Fraud in the UAE: Certified Fraud and Forensic Accounting
09

Jan 2020

Whenever the term “capital” or “money” is used then in someplace the term fraud is also an inevitable term. In short, fraud can be defined as the act of greediness or deception that will lead to personal gain or personal profit. Mostly the purpose behind the fraud is greediness and covetousness. Cheating can occur anywhere in the industry. Fraudulent may include a single individual or a group of people. Some people do it to have more money than they should and to obtain documents that they cannot otherwise have if they do not take a step towards fraudulent means. It can also mean that the one who conducts fraud deprives the victim of an absolute right.

When the country develops according to that the crimes also increases. People always want to do the thing that would easily give them profit within a lesser time span. Fraud is the type of crime that seems to happen all over the world even in every corner of the UAE. for the avoidance of such criminal activity, the UAE government passed Penal Code Article No. 399 in the year 1987.

By keeping insight of all the crimes and frauds happening in the business industry, the government of the UAE is so concerned about fraud risk assessment process to avoid any fraudulence and embezzlement. This is why forensic accounting Dubai is widely offered by various firms in the country because of the business owners need to ensure that they are accomplishing their business activities according to the law without violating anything.

It is therefore essential that business people should well aware of the things that they must know regarding fraud activities because this is going to help them in preventing themselves from being a victim or avoiding doing one thinking that it is a simple matter and does not have many repercussions.

Various Types of Frauds

In any business industry, there are different kinds of fraud exist. Let's give a glance to some of the most renowned fraud in different business sectors.

1. Money Fraud

As mentioned earlier, when the term money comes, the list of Fraudsters also increases. Many fraudsters gain profit by stealing money from the organization and then make fake bills in order to use it for certain payments. The tragedy comes when the bill circulate and your client won’t even notice it. Anyone can be a victim of money fraud.

Apart from not gaining any revenue because of this fraud, you can even lose money when you exchange fake bills with real ones. The fraudulence can only be when someone tries to deposit it in a bank.

It is therefore mandatory for the people, or the accountants who handle your money should know how to distinguish fake from real money

2. Financial Statement Fraud

When some data is being added or removed from the financial statements of an organization purposefully to gain something, then that type of fraud comes under financial statement fraud.

There are a lot of businesses that choose to do this kind of fraud to escape from paying a massive amount of corporate tax to the government or to get the investors’ interest and have approvals in credit.

It is therefore crucial that forensic accounting Dubai services and the auditing department of the organization of the should be alert to avoid this kind of fraud in their organization because it has significant repercussions when caught by the authorities.

3. Payroll Fraud

Payroll fraud can be considered as another kind of fraud that can be done inside any organization. Sometimes this can be a group activity of employees who work together to achieve this kind of scam.  It can start with having their timesheet cards that show they were present at the workplace in certain days when in reality they weren’t around or having worked at this much hour when they didn’t do so. Also, some employees ask for salary advances that they do not pay.

To avoid this kind of fraud, a background check should be conducted by the company before onboarding anyone in the company.

Avoidance of Fraudulence

The amount of fraud is getting higher day by day. To avoid the fraudulence in any business organization, you have to follow specific rules and regulations

  • Keep track of all your transactions. Update all the cash inflow and outflow statements to make a clear picture of your company.
  • Choose for the best accounting and bookkeeping services. JAXA accountants provide the best accounting service all over the UAE. We check every detail and every record of the company to make a proper analysis of the data to avoid fraud.
  • Maintain the transparency of data in front of concerned employees.
  • Pay your tax timely.
  • Conduct auditing service once in a while in your company to maintain your brand reputation.

Fraudulence can severely hamper your company's reputation in front of the public and the investors who want to invest in your company.

We at JAXA, provide world-class accounting, bookkeeping, and auditing service to our clients for their business. Apart from that all the tax handling services, VAT registration is some of the remarkable services of our company. Contact us to get more information regarding our company and its services.