Antifraud checklist for construction companies

Defrauded companies lose a median $130,000. But construction companies are hit even harder, with a median loss of $227,000. What can you do to protect your construction business? Tighten your internal controls. In addition to conducting surprise audits, segregate duties — meaning that more than one person handles accounting tasks. Require employee vacations, and have someone other than your purchasing agent regularly review vendor invoices and purchase orders. Along the same lines, ask someone independent of your accounting function to verify names and pay rates on your payroll. For more ideas, contact us.