Top of the heap – Be aware of the most rampant fraud risk areas
Abstract: When fraud strikes a borrower, its ability to repay debt — and the quality of its collateral — may be compromised. This article shows how lenders can protect themselves from fraud losses by identifying and monitoring high-risk balance sheet accounts. It focuses on the fraud-prone areas of accounts receivable, accounts payable and inventory. A sidebar lists some of the ways executives under pressure might misstate or exaggerate financial results.