Association of Certified Audit Examiners Find Occupational Fraud More Likely in Small Businesses
In a recently release report the ACAE said small organizations are disproportionately victimized by occupational fraud because they typically lack the anti-fraud controls of larger firms.
Among the other findings:
- The median loss found in the study was $160,000 per company.
- More than 80% of the frauds in the ACAE study were committed by individuals in one of six departments: accounting, operations, sales, executive/upper management, customer service or purchasing.
- More than 85% of fraudsters in the study had never been previously charged or convicted for a fraud-related offense.
- Fraud perpetrators often display warning signs that they are engaging in illicit activity. The most common behavioral red flags displayed by the perpetrators were living beyond their means (43% of cases) and experiencing financial difficulties (36% of cases).
In their study ACAE found that 40% of the fraud detected was reported by tips from others, sometimes ex-spouses or partners. Management review found 15.4%, internal audits 13.9%, accidental discovery 8.3%, account reconciliation 6.1%, document examination 5.2%, external audits 4.6%, and surveillance 2.6%.
To view the conclusions of the report and the most effective controls, go to http://www.acfe.com/rttn/2010-conclusions.asp
Recently, the former marketing director for a large outfitter was sentenced to two years in prison for tax evasion related to fraudulent activities while working at the company. A program at the AOA’s Marketing and Management Conference will focus on financial controls to prevent fraud.
Forest Service Issues New Updated "Need Assessment "for Pasayten and Lake Chelan Wilderness
The information below is from a Federal Register Notice which describes the Need Assessment that many outfitters may find rolling out in their areas.
“The Forest Service has prepared a new Need Assessment titled `Determination of Need and Extent Necessary for Commercial Service (Outfitters and Guides) in the Pasayten Wilderness and the Lake Chelan-Sawtooth Wilderness', July 2010 (Need Assessment) and confirmed that there is a need for pack and saddle stock outfitter-guides in these wilderness areas. It evaluated the service in terms of wilderness dependency and education of clients about wilderness practices, in addition to the public need for the service based on skill, equipment, knowledge, safety, and current interest and demand."
According to the Federal Register Notice, “The Wilderness Act prohibits commercial services in wilderness except to the extent necessary to provide for wilderness appropriate activities. The Need Assessment established that the minimum number of service days needed to meet this need for pack and saddle stock commercial services in the Pasayten and Lake Chelan-Sawtooth wilderness areas is 2,720.”
"Currently both the Okanogan and Wenatchee Land and Resource Management Plans (Forest Plans, 1989, 1990) have inconsistent management direction regarding party sizes and maximum vegetation loss sizes. The Okanogan Forest Plan currently does not allow vegetation loss to exceed 400 square feet (MA15B-22B). The Wenatchee Forest Plan allows vegetation loss of up to 1,000 square feet (Table IV-15, page IV-77). Both Forest Plans allow party sizes of up to 12 people and 18 head of stock in these wildernesses. It is physically impracticable to fit camps with 12 people and 18 head of stock inside areas of 400 to 1,000 square feet. Using computations included in the analysis file, 5,250 square feet was identified as an area in which 12 people and 18 head of stock could reasonably camp. Due to historical use, including large party-sizes and livestock grazing, some existing camps exceed 5,250 square feet. Continued use and short growing seasons have perpetuated some of these camps even though livestock grazing is no longer occurring and party size is now limited. There is a need to make camp sizes consistent with party sizes in the existing Forest Plans.”
Correction to Our Last Bulletin on Forest Service Visitation
The numbers should have read:
A recent Forest Service study reveals recreation trends among the U.S population.
- 173,526,000 (not 173,526) recreation visits to National Forests each year generate an estimated $13 billion in direct spending
Casting Call: The Discovery Channel and Pilgrim Films are now casting for the new season of “Out of the Wild.”
THE CHALLENGE -- Is to join a band of fellow explorers on a journey through to South America. Producers will fly you to South America for the opportunity to prove your adaptability, endurance and strength of will!
TO APPLY -- send an email to OTWCasting@gmail.com with your name, a recent photo, phone number, city/state, and a short explanation of why you feel you are up to the challenge. You must apply no later than AUGUST 26, 2010. For more information, visit www.pilgrimfilms.tv/casting or call our casting hotline: 818-478-4570.
* Applicants must be at least 21 years of age and a resident or citizen of the United States. This show will involve international travel. Transportation to and from Los Angeles and lodging in the Los Angeles area will be provided for the Final Casting process the week of October 4, 2010. Transportation to the filming location will also be provided. Filming will take place on or about October 16 through approximately November 20, 2010.
*“America Outdoors Association (AOA) is not an agent or endorser for this Discovery Channel program or Pilgrim Films. We are providing this information only as an item that might be of interest to some members. The activities may involve risks in “brutal environments” that should be carefully evaluated by anyone applying to participate. AOA assumes no responsibility for any injury, death or financial loss that may occur from your participation in this activity, film or casting call..