Antifraud Checklist for Construction Companies

By Anthony Lanasa, CPA CFE, John Forbes CPA

According to the Association of Certified Fraud Examiners’ Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse, organizations victimized by fraud lose a median $130,000. But construction companies, in particular, are even harder hit, with a median loss of $227,000. What can you do to protect your construction business? Adopt this checklist.

An effective strategy for minimizing fraud is to tighten your internal controls. Make sure the following are part of your policies and procedures:

Surprise audits and jobsite visits. These visits can not only help detect fraud, but also send a strong message that combating fraud is a priority — which is a powerful deterrent.

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