Internal Fraud

  • December 01, 2016
  • By David J. Bilinsky

The Association of Canadian Anti-Fraud Examiners (ACFE) has a Fraud Prevention Check Up in PDF format in both English and French. It recommends that you perform this check up in conjunction with an Anti-Fraud Examiner but the list provides a good overview of the steps you can take now to reduce fraud.

The Law Society of BC published “The Trust Accounting Handbook” that encapsulates the procedures and rules for operating a trust account. It also publishes a list of the Fraud Alerts to the profession.

PracticePro has an excellent resource that addresses several types of fraud.

RubinBrown LLP has a list of 30 internal control considerations in an article entitled “Focus on Law Firms: Managing Law Firm Fraud Risks – An Internal Control Checklist” (June, 2016).

The Association of Certified Fraud Examiners, Inc., in an article entitled “Designing an Effective Anti-Fraud Training Program,” sets out the topics to cover in designing employee training to counter fraud.

The Canadian Banking Association, in an article entitled “Protecting Yourself from Cheque Fraud,” advises “Review your monthly bank statement or regularly check your transactions through online or telephone banking. If you see transactions you didn’t do, notify your bank immediately and they will investigate.”

Dave Slovin, in an article entitled “Blowing the whistle: a well-designed, accessible whistleblower hotline can be a powerful tool in the fight against fraud,” quotes Warren E. Buffett chairman of the board of Berkshire Hathaway, a global investment firm with 180,000 employees, who said after their recently installed hotline, “Berkshire would be more valuable today if I had put in a whistleblower line decades ago.” The issues raised are usually not of a type discoverable by audit, but relate instead to personnel and business practices.

© 2016 David J. Bilinsky