Unfortunately in the corporate world there had been internal fraud committed by employees no matter what type organizations they are-nonprofit or profit-and this situation occurs more than anyone thinks it does. Embezzlement happens most frequently to not for profit organizations that have not taken active steps to prevent it. In addition, once any type of fraud or financial mismanagement is detected, many nonprofits do not handle the information properly or understand their responsibility; specifically, whether it is best to address the situation internally or report the fraud to the authorities. Periodically, the latest major fraud hits the headlines as other organizations sit back and watch, telling themselves that ‘it couldn’t happen here.’
