The three key elements of fraud

Fraud occurs in dealerships quite simply because it can.  The three elements of fraud are: 

• the employee has the means to commit it;
• the employee can justify it; and
• the employee believes he or she can “get away” with it. 

The most common fraudulent practices include:  non-recording of revenue; withholding receivable collections (lapping); accounts payable fraud; kickbacks; theft of materials; and conflict of interest.

Our extensive knowledge of automotive dealerships can be put to use to help you uncover and resolve your fraud problems.  There are a variety of control procedures we can help implement that will help you to detect fraud.  These procedures have specific applications in the new vehicle department, new vehicle inventory, used vehicle department, parts department, service department, body shop and accounting department.