Lapping accounting fraud is no easy business. It's always better to nip it in the bud. Therefore, try and catch hold of the fraudulent employee even before he has joined your corporate enterprise. Yes, adhere to a strict interview procedure and go through the routine inspection even though it might sound boring. Make sure you are properly done with vouching, footage, examining the ledger documents, and checking the inventory controls.

By alerting the authorities beforehand of any suspect, you can not only save your company but also save the governmental authority of further financial losses via account manipulation. The key to lapping accounting fraud lies in developing a Fraud Theory Approach. It involves the following five-pronged approach:

* To go through a rigorous examination and detailing of a candidate's documents and work certificates, even the documents of CEOs and CFOs. A recent survey shows that CEO and CFO were involved in fraudulent cases at least 83 % of the time.
* Try and develop a fraud theory keeping the following three pointers in mind: (a)Corruption (b)Misappropriation of current assets (c) A defective financial statement.
* Endeavor to seek additional details and documentation in support of the theory.
* Establish confirmation of theory via direct interview of suspect.
* Final and direct confrontation of the suspect.

Guidance material, contacts and helpline to catch hold of accounting frauds:

* AICPA Books and handbooks.
* Financial Reporting Fraud, a guide book again.
* CPA's Guidebook of Commercial Crime Prevention.