Page 264 - ACFE Fraud Reports 2009_2020

Detection of Fraud schemes

Initial detection of Frauds in Small businesses

Tip 33.3% <100 Employees
43.4%
Management Review 15.3%
15.8% 100+ Employees
By Accident 12.1%
6.4% 9.2%
Account Reconcilliation
Detection Method Document Examination 7.1% 16.0%
5.1%
8.2%
Internal Audit
7.9%
4.1%
External Audit
3.3%
2.9%
Notified by Police
2.1%
Surveillance/Monitoring 1.5%
2.7%
1.7%
Confession 0.7%
IT Controls 0.2%
1.0%
0% 10% 20% 30% 40% 50%
Percent of Cases

Detection of occupational Fraud Based on Region
The following charts show how frauds were detected based on the region in which they occurred. In every region, tips
7
were responsible for detecting the most occupational frauds by a wide margin. The percentage of cases detected by tips
ranged from a high of 50% (in Africa) to a low of 38% (in the United States). In all but two regions, management review
and internal audit were the second and third most common means of detection, following tips.

detection in the united States — 1,001 cases

Tip 37.8%
Management Review 13.7% 17.1%
Detection Method Document Examination 4.2% 9.3%
Internal Audit
By Accident
Account Reconciliation
6.2%
6.2%
External Audit
Notified by Police
1.9%
Surveillance/Monitoring
1.7%
IT Controls 1.2%
Confession 0.8%
0% 10% 20% 30% 40% 50%
Percent of Cases
7 See Appendix for a listing of countries included in each region.

20 | 2010 RepoRt to the NAtioNs ON OccuPATIONAl FRAUD ANd AbuSE