• Fraud

    FRAUD IN SMALL BUSINESSES EXACERBATED BY SIZE

    ABSTRACT Over half of the US workforce is employed by a small business. These small businesses also account for 46 percent of non-farm GDP. Despite their contribution to employment and the economy, little about them is covered in college level accounting and business courses. Most material covers accounting for midsize to large corporations. In this paper, I will highlight how vulnerable small businesses are to fraud due to impracticalities of implementing separation of duties and steps they can take to mitigate fraud.   INTRODUCTION Small businesses, those with 500 employees or less comprise of 99.7 percent of employer firms and 42 percent of private sector payroll (Bureau of Labor Statistics,…