This guide discusses the types, characteristics, indicators and symptoms of fraudulent activities that occur within companies.
An understanding of the symptoms of fraud is the key to detecting fraud. A symptom of fraud may be defined as a condition which is directly attributable to dishonest or fraudulent activity. It may result from the fraud itself or from the attempt to conceal the fraud. This guide includes representative examples of symptoms or “red flags” of fraud related to the accounts payable process, purchasing process, payroll process, cash receipts process, accounts receivable process, inventory/production process, and finance process.