Small Business Fraud Checklist
[ ] Demonstrate a high ethical standard for your employees to follow.
[ ] Treat your employees with respect and fairness, including a fair salary.
[ ] Create a code of conduct policy handbook that explicitly prohibits employees from
committing fraud, conflict of interest and other illegal acts. Have high level employees sign an annual confirmation of their compliance with the code of conduct policy.
[ ] Have a "trust, but verify" code policy. Take special note of any employees that
appear to live well beyond their means.
[ ] Verify the credentials of all your new vendors before conducting business with them.
[ ] Use electronic transfers for large payments protecting yourself from possible
check alterations. Also, use direct deposit for payroll activities and place a dollar limit on checks written on your accounts.
[ ] Before your bookkeeper reviews your original bank statement you should go
over it first and take note of any unexpected overdrafts or declines in the cash balance.
[ ] Ensure bank statements are all balanced on a monthly basis.
[ ] Have the bookkeeper's work reconciled by a CPA periodically.
[ ] Consider the possibility of fraud if something seems odd such as a disbursement to an
unfamiliar vendor or unexpected costs.