Slide 1: Hello everyone, my name is Chris, today I am going to talk to you about Preventing financial fraud in your business.

Slide 2: There are 4 major types of fraud that occurs in a small business, inventory fraud, check fraud, commercial bribery and information fraud. Slide 3: Inventory fraud occurs when employees steal directly from their employers inventories. Slide 4: Check fraud typically occurs when employees write illicit checks to themselves or other people Slide 5: Commercial bribery typically occurs when employees sell company merchandise to third parties, taking a split of the profits earned from reselling the merchandise. Slide 6: Information fraud occurs, when the company digital records are hacked into. Slide 7: Most of the frauds that occur in a business are from internal personal, hacking tends to be from a third party. Slide 8: Tips on how to prevent financial fraud, Slide 9: Run background check, check to see if they have been arrested. If they have a background in sealing or sexual harassment, they will probably do it again. You can also run a credit check to see what kind of financial problems your employees are having. Just because they have a bad credit doesnt mean they are going to steal from you. But its a good thing to keep in mind. Slide 10: Verify their resume, if they said that they graduated from a college or university, check to see if its true. Also verify some of their references, see why they left the other job. Slide 11: Segregate accounting functions, separate the recordkeeping, authorization and review functions in the accounting process. To segregate duties, involve more than one person in the financial statement preparation process. Slide 12: Initiate annual examinations of financial statements by an outside party. In many cases, management is the party committing fraud. Management may feel pressure to meet financial goals for the company or may receive incentives if certain goals are met. To help prevent management from engaging in overly aggressive adjustments to the financial statements, have an independent party examine financial statements on an annual basis Slide 13: Get involved, as an owner, keep a close eye on your business the biggest mistakes one can make is to trust the loyalty of his/hers employees. Slide 15: get good anti-virus software for your computers, dont rely on the trial versions in anti-virus system purchase a good one and run a system check every night. Slide 14: to summarize, every company is at risk of fraud, although following some basic procedures can prevent financial fraud from occurring in the first place.