Companies Lose Approximately $660 Billion Annually to Employee Fraud

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Over one-fifth of all employee fraud cases are uncovered by accident. After scandals at companies such as Enron, WorldCom, and Tyco, one of today’s hottest issues is employee fraud.

At a recent presentation co-sponsored by Goldstein Lewin & Co., Certified Public Accountants and Consultants, a panel of experts provided practical advice on fraud protection and employment risks.

“Unfortunately, most organizations that have been victimized by fraud never recover their losses,” stated Eyal Ardity, CPA, Senior Audit Manager at Goldstein Lewin & Co. in his presentation, What You Don’t Know Can Hurt You: Preventing and Detecting Employee Fraud. “Section 404 of Sarbanes Oxley Act, requires public companies to implement controls to identify, prevent and detect fraud and as a result have seen a reduction in fraud losses. Many private companies and not-for-profit entities are also considering adopting the same type of controls to mitigate their fraud risks.” Visit http://www.goldsteinlewin.com/fraudpresentation.pdf to view this presentation.

The importance of internal controls in fraud prevention was further emphasized by Robert Cini, CPA, CITP of Connexia Consulting. He demonstrated how software can reduce a company’s vulnerability by automating and integrating data originating in many different departments. “Data overload caused by fragmented databases and manual processes makes it easy for employees who commit fraud to conceal their actions,” said Cini.

David Block, Esq., of Jackson Lewis focused on employment issues, employer responsibilities, and employee recourse under the Fair Labor Standards Act. He discussed measures that employers can take to hire the right employees and administer policies in compliance with federal employment regulations.

Goldstein Lewin is listed in Florida Trend as one of the 25 largest accounting firms in the state of Florida. It offers a comprehensive range of accounting and business consulting services including corporate governance issues, cost segregation studies, eldercare management, accounting and auditing including SEC compliance; tax services; technology consulting; wealth preservation and estate planning; business valuation; financial planning, employee benefits programs and litigation consulting. The firm has been designated one of the Best Places to Work in South Florida.

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Norma Wolpin