Fraud Schemes and Related Controls in the Construction Industry

Fraud SchemesFraud in the construction industry takes on many forms, from asset misappropriation to financial statement fraud. According to the Association of Certified Fraud Examiners’ 2014 Report to the Nations on Occupational Fraud and Abuse (RTTN), the average organization loses five percent of its revenues to occupational fraud. Factor in waste, abuse, and non-occupational fraud (fraud committed by those outside the organization) and the risk of lost revenues increases even further. Bond producers who are aware of these related schemes and the related controls better position themselves to sensitize their contractors and their issues.

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