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Also, businesses are deceived in many ways by their own employees and bythe people they deal with. According to Smith (1999, p.1), due to financial crimes involving fraud, businesses or any venturesmay also be considered victims. In fact, a survey carried out by Association ofCertified Fraud Examiners reported that a firm loses 5% of proceeds yearly dueto fraud.

An estimated amount of $3.7 trillion was lost in 2013 (Klein, 2016, p. 6). The business be it small, mediumor large loses a certain percentage of their hard-earned income as fraudsincrease yearly. In this essay, the following definitions will be used. Firstly,according to Black’s Law Dictionary cited in Gee (2014,p.1), fraud is defined as a demonstration of intentional misdirection ordeceptive nature executed by at least one people, for the most part formonetary benefit. Secondly, according to AustralianTaxation Office (2017, p.

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1), large businesses can be defined as publicor private companies with a turnover level $250 million and above. Finally,small to medium businesses can be defined as a producer with two hundred orfewer regular employees Customs Act 1901 (2013, p.1) This essay will explain the methods to avoid fraud in medium to largebusinesses and also discuss the most effective methods. Every organization or business firms are the victims of fraud at somepoint. One cannot guarantee that one can eliminate the fraud permanently.However, an organization has the option to at least look for the preventiontechniques to avoid fraud. Therefore, there are few methodologies anorganization need to follow in order to avoid fraud.

  The first method to steer clear of fraud in businesses is to set up whistleblowinghotlines. According to Brown cited in (Lee & Fargher,2012, p.284), while evolving an interior whistle-blowing system, it issuggested to develop in such a way that is accompaniment an organizations codeof ethics. According to Mangala and Kumari (2015,p.58), examples of whistleblowing can be e-mails, telephones hotlinesand emails. In addition, according to Association of Certified Fraud Examinercited in Rivest and Lanoue (2015, p.298), hotlinesare anonymous reporting mechanism that can be utilized by employees, providersor customers to file irregular activities or allegations of fraud.

Furthermore(Rivest & Lanoue, 2015, p.298) states that hotlines additionally assistlocate fraud quicker, which has an effective effect on lowering the quantitiesstolen.For example, in Canada, businesses with hotlines helped reduced fraudloss from C$1,147,180 to C$811,714 which is equivalent to nearly 30 percent infinancial saving. Therefore, representing significant benefits whichcounterbalance the costs incurred to enforce and run this type of reportingmechanism.    Secondly, the excellent method to avoid fraudster is to do theproof-based research into individual’s past before the person’s entry into thebusinesses, (Sheridan, 2014, p.238).

Furthermore,according to Sheridan (2014, p.235), normally basic reference checking is donewith an excellent a further test or two with individuals who know thecandidate, however, are not indexed as referees. In addition, a few businessesalso have considered complying with investigations, specifically for employeesin positions of belief, on a periodic foundation (as an instance, every fiveyears), (Biegelman & Bartow, 2012, p.107).

Moreover,affirming that there are now more job seekers where there is a chance that thejob seekers might try hard to get the job by falsifying their documents. As anexample, in one of the personal interviews with the author, it was found outthat about 15% of job seekers applications included false data, (Kovacich, 2017, p.108).   Thirdly, it is always considered safe to set up good and appropriaterules and regulations by every organization for the smooth run. In fact, anorganization needs to have decided in advance what it might do if a fraud occurred;particularly, what consequences could be meted out for what types of frauds andstages of fraud, (Singleton & Singleton, 2010,p.137). Furthermore, according to O’Gara (2004,p.134), the set of principles are disseminated every year, and all the memberof staffs are required to declare that they have perused and comprehended it.

Also, that they will act according to the fraud strategy. However, a currentpositive turn on this training is expecting a member of staff to declare thatthey have neither seen nor are mindful of any infringement of the set of rules.This can likewise incorporate, expecting them to uncover the points of interestof all infringement of which they have learned. In addition, according to Pickett (2012, p.105), fraud policy should be easy tobe understood by the employees as it is set out for all the member of staffs ofan organization. Furthermore, as an example, (Pickett, 2012, p.106), statesthat the fraud strategy should be set sturdy enough to handle with practicalproblems that face the sort of business in the query, which includes bribery,corruption, worker share and compliance issues whilst dealing with largecontracts.

Therefore, setting code of conduct in businesses is essential as ittoo can help in avoiding frauds. Finally, the hiring of a Certified Fraud Examiner can be highlyeffective in order to avoid fraud in businesses. According to Crumbley, Heitgerand Smtih cited in (Silverstone, Sheetz, Pedneault &Rudewicz, 2012, p.4), forensic accounting is the action of figuring out,recording, settling, extracting, rectifying, reporting, and verifying pasteconomic records or different accounting activities for settling contemporaryor potential prison disputes or the usage of such past economic statistics forprojecting future economic statistics to settle criminal disputes.

Furthermore,Silverstone, et al. (2012, p.92), states that forensic accountants are thefundamental people in any fraud research because they apprehend accountingstructures and internal controls, and understand a way to hint the drift offunds into, through, and out of the business enterprise.

In fact, the forensicaccountants can, offer significant information and experience approximately fraudthat might not be available in some other place inside a business enterprises, (Biegelman & Bartoo, 2012, p.112) Consequently,soliciting for a forensic accounting research designed to clear up thesuspicion of fraud in businesses can be appropriate, (Skalak,Golden, Clayton & Pill, 2015, p.228). Hence, approaching CertifiedFraud Examiners can help businesses to go fraud-free.     Moreover, amongst the fraud prevention methods mentioned earlier, thereare again constructive techniques to tackle fraud in businesses.

According to (Bierstaker, Brody & Pacini, 2006, p.529), theauditors were beseeched to assess the effective techniques to strive againstthe fraud. Although the auditors found out that hiring of forensic accountantsare not been utilized by many organizations yet those received the highestratings for their efficacy.  In conclusion, amongst other methodslike hotlines, reference checking and code of conduct, one of the mosteffective methods to avoid fraud in medium to large businesses, in my opinion,is to avoid it by hiring Certified Fraud Examiner also known as ForensicAccountant.

In fact, by approaching a forensic accountant a business could

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