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The Aadit Report and Internal Control Evaluation

This report contains the supporting information to perform a full financial status review of our company, before the upcoming government contract bid. This report will cover the possible impacts that occupational fraud and abuse will have on the company, U.S. Governmental oversight of accounting fraud and abuse, and potential corruption schemes within the company. Impact of Occupational Fraud and Abuse To understand the impact of occupational fraud and abuse, it must be defined. Occupational fraud is a crime committed by employees against their employer. Occupational fraud accounts for almost 5% of all the economic losses suffered by most companies. The percentage discussed may be higher; however most occupational fraud goes undetected for yeas or the offenders quit prior to being caught (Mulford & Comiskey, Chapter16, 2003). Occupational Fraud impacts a companys bottom line, reputation, employee productivity, and possibility of business continuity or security within a given industry. Another impact of occupational fraud is a companys increased desire to prevent or deter fraud; which can also be cumbersome. Fraud is a crime of opportunity, fueled by greed and rationalization (Latshaw, Craig A,2003). The penalties for fraud are usually not a deterrent from

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