Fraud Risk Assessment
An effective anti-fraud tool for SMEs
Small and Medium Enterprises (SMEs) are vital for economic growth, especially in developing countries, but are particularly vulnerable to fraud. The Association of Certified Fraud Examiners (ACFE) 2024, A Report to the Nations, highlights that smaller budgets and revenue make SMEs more vulnerable to the impact of fraud compared to larger organisations.
Small businesses are at higher risk of fraud due to their limited resources, relatively informal processes, and lack of anti-fraud technology. To protect themselves, businesses can conduct a Fraud Risk Assessment (FRA), as recommended by the Chartered Institute of Management Accountants (CIMA) and the Committee of Sponsoring Organisations (COSO) .
This assessment helps identify and manage fraud risks efficiently, even with limited resources.
This article discuss how FRA can help small businesses in Ghana combat fraud. Future articles will cover additional components needed for a comprehensive fraud risk management programme for SMEs.
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