How to Protect Your Business Against Fraud?

ACCOUNTS PAYABLE FRAUD: IS YOUR BUSINESS PROTECTED?

Chartered Accountant in Delhi

Think about all the money that flows out of a business. Payments go to vendors, suppliers, utilities, and rent. And every rupees that a company spends goes through Accounts Payable (AP). For this reason, AP is vulnerable to fraud from inside and outside of the business.

What is accounts payable fraud?

AP fraud involves a wide range of activities. Check tampering cons, billing schemes, and expense reimbursement scams are all examples of AP fraud. Some definitions:

· Check tampering scheme 

A fraudulent disbursement scheme in which a person steals his or her employer’s funds by intercepting, forging, or altering a check or electronic payment drawn on one of the organization’s bank accounts.

· Billing scheme 

A fraudulent disbursement scheme in which a person causes his or her employer to issue a payment by submitting invoices for fictitious goods or services, inflated invoices, or invoices for personal purchases.

· Expense reimbursement scheme

A fraudulent disbursement scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses.


Red Flags

It’s not always easy to see the signs of AP fraud unless you know where to look. Good accountants have developed effective ways to spot accounts payable fraud. Great accountants can also reduce the chances of it happening. Here are a few ways to detect accounts payable fraud in any business:

1. Consider the human element.

2. Verify your vendors.

3. Test transactions.

4. Monitor financial ratios.

5. Review write-offs.

You can contact us for any help: Accountant in India

Tax returns deadline not extended

Authorities have cautioned taxpayers about a fraudulent order extending the date for filling audit report and return of income for 2015-16. The income tax department has clarified that circulation of a fake order dated September 26 for extension of due date for filling of audit report and return of income for assessment year 2015-16 is fraudulent, a government statement said.

The government has not extended the due date for filling of returns and audit report due by September 30.2015 tax payers and practitioners are advised not to give any credence to the fraudulent order. The fake order extends the due date for filling of audit report under section 119 of the Income-tax Act to October 15, 2015.

It is clarified the order is fraudulent. The government has not extended the due date for filling of returns and audit report due by 30^th September 2015. Tax payer and practitioners are advised not to give any credence to the fraudulent order chartered accountant in Delhi.

Read more at: http://timesofindia.indiatimes.com/business/india-business/Tax-returns-deadline-not-extended/articleshow/49146440.cms