Forensic Accounting is only one small aspect of the accountancy profession. A business loses as much as 7% of its potential income to the fraudster which is much more than it will be paying in audit, accountancy and tax advice fees altogether. So even though only a small area it can be seen how important Forensic Accounting is. Forensic Accountants can advise organizations how planning a response to fraud can lessen the blow.

Most victims of fraud react in a similar way when they are confronted with the fact that their organisation has succumbed to the fraudster. This is usually by feeling shock or anger, they will take it personally. Trust is essential within a business and having this has been abused.

Being angry might make you feel better in the short term but it is hardly likely to help to recover the losses or deal with the fraudster. It is a lot better to have a plan ready to implement and deal with the problem. A fraud response plan can be put in place in readiness by the smallest to the largest of organizations, and may help prevent the victims committing too great professional costs without the hope of recovering at least the equivalent amount of the losses.

Your response plan will ask two key questions that need to be addressed before any fraud takes place:

• Will your staff policies allow you to investigate records held on computers and mobile phones used by the fraudster within you organisation and which might hold evidence of how they have defrauded you?
• Are you up to speed with the rights you employees currently have and do you have quick access to legal and employment advice if a fraud occurs?

A very simple fraud response plan might only consist of telephone numbers - your employment advisor, your legal advisor and your accountant who preferably should be a forensic accountant.

Mark Jenner is a forensic accountant specializing in fraud problems. He assists companies and other organizations to prevent and detect fraud and to recover stolen assets. He is a Fellow of the Institute of Chartered Accountants, a Certified Fraud Examiner and holds a Masters Degree in Fraud Management.