The Seven Deadly Sins . Advertisements
In the world of forensic accounting there is a somewhat similar collection of cautioning indicators called Red Flags.
Unfortunately for us, the Red Flag list is not limited to seven sins . As you can imagine, for every hotel s control environment and operating structure the opportunities for Red Flags to emerge can be fluid, especially in the COVID-19 era we are operating.
When Does Hotel Fraud Occur?
Red Flags can occur for a number of reasons ranging from hotel internal control vulnerabilities to behavioral patterns. The existence of a Red Flag does not necessarily mean a fraud is occurring; however, it can be a warning that should be addressed.