The Better Way – Tips For Implementing Controls To Prevent Fraud

Last week, the Auditor General of Toronto issued a report estimating that in 2018 alone, the TTC lost $61 million due to fare evasion.

As both a frequent rider of the TTC and forensic accountant specializing in fraud investigations, I found the report interesting (and disturbing) on both a personal and professional level, because many internal controls that I assumed were in place at the TTC to prevent fare evasion actually did not exist, while other controls that were in place were ineffective. The report highlighted the importance of investing in strong internal controls, and what can happen when that does not occur.

Here are some general tips to designing and implementing internal controls effectively.