If you’re paying bonuses to your sales personnel based on the revenue they bring in, i.e. new contracts, price increases etc. you ought to think about the risks such bonuses inherently include within. The highest risk would be fictitious sales. In this case sales are being manipulated with and falsely created in accounting to earn […]
Equity is not “married” to the company indefinitely; it can be decreased just as it can be increased. Now, to focus on the negative change in equity, decrease can happen in two ways:
What does someone settle? Debts usually, right? In everyday business you’d settle receivables with payables if you have them with the same party. There’s no real point in you paying the company B a certain sum and then the company B paying you effectively the same money back. It’s a wasted time, bank charges etc. […]
Identifying fraud isn’t easy, people get clever, people have more and more playing room etc. For someone who doesn’t even think about fraud happening it’s considerably difficult to imagine schemes some might undertake to first off make fraud and then cover it up. Nonetheless there are some things you can do to identify fraud (or […]
To some extent you can do that of course, but not 100%. Fraud takes place regardless what you think happens or doesn’t happen, but what you can do it, is ensure you’ve got essential controls in place to mitigate the risk. If you think about it, there are some very easy controls you may implement […]
You cannot say “surely”, because most likely some form of fraud is in fact taking place in your company just as it takes place in most places. You may only hope that it isn’t affecting your company too much, but making it sure is another matter.
I can understand why this question may arise. On some cases you’re actually paying and on some cases you decrease outstanding balances for an example. Either way, sales bonuses you pay to your customers, they’re always, always decreasing your revenue. On the other hand bonuses you get from your suppliers decrease your expenses. It’s always […]