Services

Fraud Risk Assessment Services

Helping clients identify and address fraud risk

Identifying and addressing the risk of fraud is an imperative for almost any public or private organization. In addition to the quantifiable costs, fraud can destroy a company’s reputation, negatively impact employee morale, and lead to civil and criminal prosecution of directors and management.

How we can help

A bi-annual study conducted by the Association of Certified Fraud Examiners (ACFE) estimates that in many businesses, fraud losses total 5 percent of revenues each year.1 Applied to the 2014 Gross World Product (GWP) of $77.3 trillion (the most recent GWP data available),2 this translates to a potential projected global fraud loss of nearly $3.8 trillion. With this information in hand, it is prudent for any organization to take a long and deep look at fraud, as the impact of fraud can be devastating.

Our team of Deloitte Risk and Financial Advisory professionals can help your organization identify and manage the risk of fraud by conducting a Fraud Risk Assessment (FRA). An effective FRA engages an organization in a proactive vs. traditional reactive approach, identifying fraud risk factors, assessing vulnerability to fraud, and identifying potential fraud schemes.

Benefits to conducting an FRA include, but are not limited to:

  • Strengthening of internal controls over financial reporting processes
  • Integration with internal audit for enhanced monitoring
  • Identification and mitigation of potential fraud risks
  • Compliance and alignment with Principle 8 of the 2013 COSO Framework
  • Protection from exposure to reputation risk and financial loss
  • Increased visibility of fraud risk across the enterprise

Our Deloitte Risk and Financial Advisory professionals have extensive experience in providing anti-fraud consulting services to a wide of range clients across industries, government agencies, not-for-profits, and universities. We take a step-by-step approach, demonstrating an in-depth understanding of an organization’s risk profile, risk factors, fraud schemes, and vulnerability to management override.

Our deep understanding of marketplace dynamics, combined with our ability to leverage technology, including customized tools and resources equipped with advanced data analytics capabilities, help to produce transformative insights which allow our clients to move ahead with confidence and better manage fraud risk in their organization.

1 “Report To The Nations On Occupational Fraud And Abuse –2014 Global Fraud Study," Association of Certified Fraud Examiners, http://www.acfe.com/rttn/docs/2014-report-to-nations.pdf, accessed 10-26-15.

2 Statistica, The Statistics Portal, 2015, http://www.statista.com/statistics/268750/global-gross-domestic-product-gdp/, accessed 10-26-15.

Fraud Risk Assessment Services

Our services

  • Design and implementation of the FRA, as part of an organization’s AFPC, including utilizing a risk-based approach that uses guidelines provided in the 2013 COSO framework to identify key business and financial processes to be included in the assessment scope.
  • Use of data analytics is an increasingly important element of an efficient FRA is the use of proactive data analytics. Our analytics tools can enable assessment across an organization to discern patterns that might go unnoticed within organizational silos or business units.
  • Integration with the broader suite of Deloitte Risk and Financial Advisory’s Anti-fraud Services, including:
    1. Anti-fraud Programs and Controls assessment, design, and implementation.
    2. Fraud control environment benchmarking.

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