Hotel Theft

During COVID-19, the hospitality industry took a significant hit. Many restaurants and hotels closed temporarily or shut down permanently. Now, as the market revives, employers again need to be vigilant. Fraud is ever-present and fraudsters are always on the lookout for opportunities. Employee theft is a major problem in many industries, and the hotel industry is no exception.

According to the Report to the Nations on Occupational Fraud and Abuse, a 2020 global study performed by the Association of Certified Fraud Examiners, the typical organization in the hospitality industry loses 5% to 6% of annual revenue from fraud perpetrated by employees and guests. For example, a hotel operator earning annual room revenue of approximately $10 million may experience losses ranging between $500,000 and $600,000. Losses from fraud would be amplified for organizations owning a chain of hotels.

How Accounting Firms Can Give Back to Their Communities

Accounting firms understand the importance of maintaining strong relationships with their communities to build a reputable profile. Establishing meaningful connections with the community requires dedication and effort from both the firm and its members. In this article, we will explore effective community service ideas that accounting firms can utilize to serve and enrich their communities while enhancing their own reputation. One such accounting firm that embodies this commitment is Studler Doyle.

 

How to Manage the Risk of Corporate Fraud during a Pandemic

 

The risk of fraud is present in all organizations, to a greater or lesser degree, depending on various internal factors such as organizational culture, level of maturity in corporate governance, management of risks, internal control, type and size of business and others, and external factors including industry: national / regional context, market in which it operates and others.

Fraud, unfortunately, is a risk that can affect any organization at any time, in normal times or even in times of crisis. Furthermore, in times of crisis, the risk of fraud may increase, as some people may find in the crisis a motive (pressure / incentive), an opportunity, or a justification (rationalization) to commit irregularities.

What is forensic audit?

The worldwide scourge of fraud, day by day is becoming a phenomenon of multiple changes and permanent mutation, optimizing its ability to adapt to all kinds of control systems that stand in its way. One of the peculiarities that it possesses is its link and progress associated with the devastating advance in computing and technology of the 21st century.

Consequently, fraud becomes versatile, prevailing in any nation or continent, regardless of language, race, culture or religion, that is, without any kind of impediments that violate its existence or impede its devastating advance.

Job functions and work environment of forensic accountants

When you hear the word "accountant," do you immediately imagine a middle-aged gentleman wearing round glasses and a green eye glow? Maybe your thoughts are focused on finance, taxes and math. In some circles, accounting has long been perceived as a safe, gentle, stable and respectable career choice, if not the most linguistic or exciting of the professions. However, that perception is changing as accountants become criminals and more and more individuals are increasingly interested in careers in forensic accounting.

The concept of forensic accounting has a relatively short but easy history, and it may start with the man who destroyed one of the biggest fish of them all, Al Capone. Agent J. J Wilson, a U.S. Treasury special intelligence unit agent, who was tasked with going after the notorious gangster for tax evasion, which resulted in his conviction and imprisonment.

Fraud Examination

Fraud

Fraud is an intentional act that causes the victim to suffer an economic loss and/or the perpetrator to realize a gain. From the global investigation and forensic accounting firm, Studler Doyle, we learned that the simple working definition of the term ‘fraud’ is “theft by deception”.

The legal definition is the same in both, criminal or civil offense. The difference however is that criminal cases must meet a higher burden of proof.