As Business Fraud Statisics Grow, Gainer, Donnelly & Desroches, LLP Affiliates with Red Flag Reporting Services

85% of U.S. enterprises (small businesses grossing less than $5 million) have the greatest risk of occupational fraud

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Jan 23, 2012, 09:00 ET

HOUSTON, Jan. 23, 2012 /PRNewswire/ -- With an astounding 88% of companies reporting fraudulent activity in their workplace over the past 12 months, it's no wonder that Gainer, Donnelly & Desroches, LLP has affiliated with Red Flag Reporting to protect its clients from fraud.

According to the Report to the Nations on Occupational Fraud and Abuse, the Association of Certified Fraud Examiners (ACFE) reported an average of five percent of revenue is lost to fraud.

The result of these findings is a concerted effort on the part of businesses like Gainer, Donnelly & Desroches, LLP to educate and train its employees and clients on fraud prevention, detection, and proactive reporting.

"Unfortunately, we've seen a lot of vulnerability in clients who over-rely on audits and internal controls alone to protect themselves from fraud," states Lynn Menard, Senior Manager in Business Advisory Services at Gainer, Donnelly & Desroches. "Businesses today need to focus on protecting their bottom line everywhere possible. Choosing to affiliate with Red Flag Reporting services was an easy decision for us – as it is the most cost-effective anti-fraud solution and it's created for any size of business. It was the perfect fit for our portfolio because it was founded within our industry, by experts with high standards similar to our own," says Menard.

Red Flag Reporting can help clients achieve a reduction of 59% in losses from fraud (than those without a hotline). In fact, the average loss to fraud reported by companies without a hotline is $245,000.

"Clients love it because it's a targeted, user-friendly and cost-effective solution to occupational fraud," says Raymond Dunkle, President of Red Flag Reporting. "At Red Flag Reporting, we see it as part of our job to protect a client's bottom line, and so we founded this turnkey program for our affiliated firms to be able to extend the protection to their clients as well. We're ecstatic to see the benefits of this proven system for fraud prevention being utilized nationally." Dunkle pointed out that Red Flag Reporting also allows the reporting of non-financial risks such as safety issues, substance abuse and harassment.

Red Flag Reporting was created to educate and empower employees with the tools to detect and report unethical behavior. Because tips and complaints are proven to be the number one method of fraud protection (ACFE Report to the Nations on Occupational Fraud and Abuse), the anonymity that hotlines like Red Flag Reporting provides has been shown to make employees feel both protected and alleviated from burden. By adding a new service to our portfolio, Gainer, Donnelly & Desroches, LLP is now in a unique position to build value and protect our clients.

About Gainer, Donnelly & Desroches, LLP

Gainer, Donnelly & Desroches, LLP, the tenth largest certified public accounting firm in Houston, provides highly personalized tax, business planning and advisory services to businesses and individuals across all industries with special expertise in construction, wholesale & distribution, manufacturing, not-for-profit, employee benefit plans, high net worth and real estate. The Firm has a diverse clientele from individuals and small business owners to multi-national corporations. For additional information, please visit www.gddcpa.com.

About Red Flag Reporting

Red Flag Reporting's mission is to protect organizations and their people from damages caused by financial fraud and employee misconduct. Developed by experienced fraud investigators and human resources consultants, Red Flag Reporting is a highly effective program to detect and stop costly problems such as embezzlement, false billing, misuse of assets and accounting irregularities. The program also addresses employee protection, raising red flags before a work condition leads to a litigious situation. More information can be found at www.RedFlagReporting.com.

SOURCE Gainer, Donnelly & Desroches, LLP