Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
Fraud is one of the most significant and costly threats facing businesses in Bahrain today — from misappropriation of assets and financial statement manipulation to procurement collusion and payroll fraud. Our Fraud Risk Assessment Services in Bahrain are designed to uncover vulnerabilities before they’re exploited and help organizations establish robust defenses against internal and external fraud.
Even the most well-meaning companies can fall victim to fraud if proper controls aren’t in place. Whether you’re a startup, SME, nonprofit, or corporate entity, identifying your fraud exposure and implementing proactive strategies is essential to preserving your financial integrity, stakeholder trust, and long-term sustainability. In today’s climate of stricter regulatory oversight and economic uncertainty, ignoring fraud risk is no longer an option.
Our certified fraud examiners and audit professionals will assess your company’s risk profile, evaluate control systems, and identify red flags across your processes, systems, and people. The result? A clear, actionable roadmap to prevent, detect, and respond to fraud — tailored to your organization and fully aligned with Bahrain’s laws and global best practices.
A fraud risk assessment is a structured process used to identify potential fraud schemes within your organization, assess the likelihood and impact of those schemes, and evaluate whether adequate controls are in place to prevent them.
It answers questions like:
Where are we most exposed to fraud?
Are our current policies and controls working?
How quickly could we detect a fraud if it occurred?
Are staff adequately trained and monitored?
Are we meeting our legal and regulatory obligations?
Our Fraud Risk Assessment Bahrain service covers:
Payroll and ghost employee fraud
Procurement and vendor kickbacks
Cash theft and asset misappropriation
Expense claim abuse and duplicate reimbursements
Financial statement manipulation
Inventory theft and diversion
IT fraud and data tampering
Conflict of interest and insider fraud
Bribery, corruption, and ethics violations
📉 Reduce the financial cost of fraud – Fraud typically goes undetected for 6–18 months. Early detection saves millions.
🔍 Uncover hidden vulnerabilities – Fraud risks often lie within trusted departments or routine transactions.
✅ Comply with CBB, MOIC, and regulatory requirements – Especially for financial, public, and large private entities.
👥 Improve employee awareness and accountability – Staff trained in fraud risk are less likely to commit it.
🔐 Strengthen internal control systems – Weak approval hierarchies and access rights are common fraud enablers.
🧾 Prepare for external audits or investor scrutiny – A fraud risk assessment demonstrates strong governance.
| Process Area | Fraud Risk | Likelihood | Impact | Control Rating | Action Needed |
|---|---|---|---|---|---|
| Payroll | Ghost employees | High | High | Weak | Automate attendance, verify IDs |
| Procurement | Vendor collusion | Medium | High | Moderate | Introduce tender committees |
| Petty Cash | Skimming | Medium | Moderate | Weak | Implement surprise cash counts |
| Sales Discounts | Undocumented price cuts | Medium | Moderate | Low | Audit discount approval process |
| Inventory | Theft during offloading | High | High | Weak | Reconcile delivery logs |
We begin with a discovery meeting to understand your business model, operations, and current internal control environment. During this phase, we identify industry-specific risks, assess your organizational structure, and determine which departments or processes require a deeper review. This customized scoping ensures that your fraud risk assessment is focused, relevant, and adds maximum value.
Our team reviews your existing governance documentation, including internal control policies, employee handbooks, procurement policies, and expense guidelines. We assess whether these documents are up-to-date, enforced, and aligned with fraud risk best practices. If gaps exist — such as lack of a whistleblower policy or vague approval hierarchies — we flag them for remediation.
We conduct walkthroughs of key processes like payroll, procurement, invoicing, cash handling, and inventory movement. Through interviews with process owners and employees, we gather first-hand insights into day-to-day activities and identify areas where fraud could occur — either due to intentional manipulation or unintentional oversight.
Using data collected, we map out specific fraud risks for each process. For instance, in procurement we assess vendor onboarding risks, while in HR we examine how employee records are managed. This mapping phase visually represents areas of exposure and pinpoints where controls may be lacking, excessive, or improperly implemented.
Next, we build a fraud risk heatmap that ranks all identified risks based on their likelihood and impact. This gives your leadership team a visual overview of your most vulnerable areas. We also evaluate the strength of existing controls, using a control effectiveness matrix to guide prioritization.
Based on findings, we prepare a tailored action plan that includes specific corrective actions, control redesign, policy updates, and employee training suggestions. Each recommendation is prioritized based on its risk rating and impact on your organization. We also indicate responsible departments and implementation timelines.
To ensure lasting impact, we offer a training session for your staff, focused on recognizing red flags, understanding fraud risks, and following proper internal protocols. This step boosts awareness and creates a culture of accountability, turning your team into the first line of fraud defense.
Small businesses in Bahrain often operate with lean teams and informal processes, making them prime targets for internal fraud, invoice duplication, or misappropriation of petty cash. A fraud risk assessment helps establish structure and prevent early-stage losses.
Banks, insurers, and investment firms must comply with CBB governance requirements, which include fraud detection and internal audit procedures. Our fraud assessment aligns with regulatory standards and prepares financial institutions for external review.
Improper handling of VAT invoices, expense reimbursements, and documentation can lead not only to fraud losses but also NBR penalties. A fraud audit ensures tax integrity and transactional transparency.
This sector is highly susceptible to procurement fraud, ghost vendors, and unauthorized material usage. Our audit tracks every dinar across projects, sub-contractors, and tendering activities to minimize leakage.
Cash-intensive businesses face daily exposure to register skimming, coupon fraud, and false refunds. We assess POS setups, shift balancing, and customer complaint logging to eliminate fraud windows.
Legacy structures often rely on high-trust and low-formality environments. Fraud risks increase when duties aren’t segregated. Our audit brings governance and accountability into focus — without disrupting family dynamics.
Handling grants, donations, and tuition requires high transparency. Fraud risk assessments help verify how funds are spent, how controls are enforced, and how to manage donor confidence.
1. Segregation of Duties
We check whether incompatible tasks (e.g., payment approval and processing) are performed by the same individual — a major fraud risk if unchecked.
2. Delegation of Authority
Are your approvals structured and documented? We review spending limits, approval hierarchies, and whether authority is exercised transparently.
3. System Access Controls
Who has access to what? We verify that financial, HR, and ERP systems have controlled, role-based access with proper audit trails.
4. Approval Hierarchies
We assess if approvals for expenses, vendor payments, and refunds are consistent, enforced, and tracked — both digitally and manually.
5. Expense Reimbursement Workflows
We evaluate your policies and processes to detect duplicate submissions, fake receipts, and excessive claims — and ensure they’re logged and audited.
6. Vendor Onboarding Protocols
We look at how vendors are selected, approved, and tracked. This is critical to avoid ghost suppliers, kickbacks, or favoritism.
7. Conflict of Interest Declarations
We examine whether employees are disclosing potential conflicts — like business interests with vendors or hiring family members without disclosure.
8. Anti-Fraud and Whistleblower Policies
We check for the presence and awareness of anti-fraud policies and confidential reporting mechanisms. These are essential for internal deterrence and early detection.
🧠 Uncover Weaknesses Before They’re Exploited
Fraud is often discovered by accident — long after damage is done. Our audit finds issues proactively, giving you a chance to fix them in time.
💰 Minimize Financial Losses and Legal Exposure
Even one fraudulent invoice or unauthorized expense can trigger financial losses, compliance fines, and legal costs. Our assessments help avoid those.
✅ Meet Bahrain’s Compliance Requirements
We align your assessment with CBB, MOIC, NBR, LMRA, and other local regulatory frameworks, giving you peace of mind during external audits.
🔍 Detect Red Flags Before They Escalate
From unusual vendor activity to inconsistent leave patterns, we train your team to detect and act on early warning signs.
👥 Build a Culture of Integrity and Control
Employees are less likely to commit fraud in companies that emphasize ethics, oversight, and transparency. We help you build that culture.
🧾 Provide Assurance to Shareholders and Boards
A formal fraud risk assessment assures your stakeholders that you’re safeguarding assets, enforcing accountability, and managing risk intelligently.
💼 Strengthen Credibility with Investors and Lenders
Due diligence is increasingly focused on risk governance. Our audit reports demonstrate that your organization is serious about fraud prevention.
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
Below is an overview of our general pricing packages for our suite of services in Bahrain. Costs vary depending on factors such as the services we offer.
Read some reviews and success stories from our loyal customers who achieved their goals and how our expert solutions have made a lasting impact on their growth, compliance, and financial clarity. Your success is our greatest achievement!
Client
I am so happy to have chosen this company! Right from the start it was a very easy decision, I knew I am in the right hands. They contacted me with every update they had and always kept me up to date with all the information and steps that we will proceed next.
Client
Highly recommend for anyone looking to establish a company in Bahrain! Waqas Akram and his team made the entire process smooth and stress-free. They were incredibly knowledgeable, responsive, and handled every detail with professionalism.
Client
The team was highly professional, efficient, and knowledgeable. They ensured that all paperwork and procedures were handled smoothly, saving us both time and effort. I highly recommend their services to anyone looking out there.
Client
Abdullah and the team have been great in assisting me with related tasks. In challenging timeframes they've supported me to ensure our company operations can start in Bahrain without any issues. Thank you. I will recommed their services.
Client
I was extremely impressed with their services. Their expertise made everything smooth and hassle-free. I highly recommend Setup in Bahrain for anyone looking for their business here. Their professionalism and commitment to customer satisfaction are top-notch.
With years of experience and a highly qualified team, we bring unmatched expertise and in-depth knowledge of Bahrain’s financial landscape to every service we provide.
1. What is a fraud risk assessment?
A fraud risk assessment is a structured review of your company’s systems, controls, and operations to identify where and how fraud could occur — and how to prevent it.
2. Is fraud risk relevant to small businesses in Bahrain?
Yes, small and medium-sized businesses are often more vulnerable to fraud due to limited controls and informal processes.
3. What types of fraud does your assessment detect?
We assess risks related to payroll fraud, procurement kickbacks, cash theft, financial manipulation, ghost employees, invoice tampering, and more.
4. Is a fraud risk assessment the same as a forensic audit?
No. A fraud risk assessment is preventive. A forensic audit investigates fraud after it occurs.
5. Why is this important for Bahraini companies?
Fraud is a major cause of financial loss and reputational damage. Regulatory bodies like the MOIC, CBB, and NBR expect businesses to have controls in place.
6. How do you identify fraud risks?
Through interviews, control reviews, process walkthroughs, document testing, and fraud risk heatmaps.
7. Will this help us during a financial audit?
Yes. Identifying control weaknesses in advance reduces risk during statutory, VAT, or external audits.
8. Do you provide a written fraud risk report?
Absolutely. You’ll receive a detailed report including red flags, risk ratings, findings, and recommended improvements.
9. How long does the assessment take?
Depending on the scope, it can range from 5 to 15 working days.
10. What industries do you serve?
We work with retail, construction, logistics, education, finance, NGOs, and more.
11. What’s the cost of a fraud risk assessment?
Costs vary based on your company’s size and complexity. Contact us for a tailored quote.
12. Can you help after the assessment?
Yes — we offer support in implementing new controls, revising policies, and employee training.
13. What if we’ve never had an audit before?
No problem. We walk you through every step and help you build a fraud prevention framework from scratch.
14. Do you assess IT systems and software?
Yes. We evaluate accounting software, ERPs, user access rights, and system logs to detect manipulation risks.
15. Can you identify ghost employees?
Yes. We test payroll records against HR and attendance systems to uncover inactive or fictitious employees.
16. Do you audit employee expenses?
Yes. We analyze reimbursement data for duplicates, inflated claims, or non-business items.
17. Is the assessment confidential?
100%. All data shared or collected is protected under confidentiality agreements.
18. Will employees know we’re doing this?
It’s your choice. Some clients opt for discreet assessments; others involve staff for awareness and transparency.
19. Can this help us meet anti-bribery policies?
Yes. We assess controls around procurement, vendor onboarding, and gifts to ensure compliance with ethics standards.
20. Do you evaluate segregation of duties?
Yes. We check if tasks like approval, processing, and reconciliation are handled by different people to prevent abuse.
21. Is this service only for financial institutions?
No. While we work with many banks and CBB-regulated entities, any business can benefit from fraud risk assessments.
22. Can we choose which departments to review?
Yes. The scope is fully customizable — from full-company reviews to function-specific audits (e.g., payroll only).
23. What are common signs of fraud in businesses?
Unusual vendor activity, irregular approvals, missing documentation, frequent cash discrepancies, or rapid lifestyle changes among staff.
24. Do you interview employees?
Yes. Interviews help us understand real practices vs. documented policies, and can uncover red flags.
25. Will you train our team after the audit?
Yes. We provide staff workshops and awareness sessions tailored to your fraud risks.
26. Can fraud exist even if we trust our staff?
Unfortunately, yes. Many frauds are committed by trusted employees exploiting weak systems.
27. What’s the most common fraud in SMEs?
Cash theft, false expense claims, and vendor manipulation are most common in Bahrain’s SME sector.
28. What controls should we already have?
At a minimum: segregation of duties, approval hierarchies, digital transaction trails, and vendor verification protocols.
29. Do you help implement whistleblower systems?
Yes. We assist with setup, policy drafting, and anonymous reporting tools.
30. Can you assess fraud risks in remote working setups?
Yes. We evaluate cloud system access, virtual approvals, and remote work controls.
31. What are the benefits of a fraud risk heatmap?
It visually shows where you are most vulnerable, helping prioritize control efforts and reduce exposure.
32. Is this different from internal audit?
Yes — internal audit is broader and often recurring. Fraud risk assessments are focused and specialized.
33. Will this help us avoid regulatory penalties?
Yes. Early detection and correction of risk areas can prevent violations under VAT, labor, or finance regulations.
34. What if we already have a finance team?
Finance teams often miss fraud because they’re part of operations. Independent assessments bring new perspectives.
35. Do you detect collusion or insider threats?
We evaluate for signs of employee-vendor collusion, unauthorized access, and bypassed controls.
36. How do you protect our data?
We follow strict confidentiality protocols, secure data transfer practices, and NDAs with every project.
37. Can NGOs or schools benefit from this?
Yes — especially those handling donations, grants, or student payments with minimal oversight.
38. Is this useful before applying for funding?
Yes. Fraud control reports strengthen investor and donor confidence in your governance systems.
39. Can I share the report with our board?
Yes — the report is board-ready, with executive summaries and visual breakdowns for decision-makers.
40. How do we schedule a fraud risk assessment?
Just contact us via phone or email. We’ll set up an initial consultation and prepare a tailored proposal.
Over the years, we’ve earned the trust of businesses in Bahrain by consistently delivering audits that are precise, punctual, and practical.
✅ Reputation for integrity: Our firm operates with full independence, which means our reports carry weight with banks, investors, and regulators.
✅ Client-first approach: We’re known for being approachable, responsive, and easy to work with. Our clients value our professional communication and fast turnaround.
✅ Bahrain regulatory expertise: From MOIC filing formats to NBR expectations, our auditors are fully versed in local frameworks.
✅ Proven track record: We’ve successfully completed audits for hundreds of companies — including startups, family-owned enterprises, and international branches.
✅ Comprehensive support: From audit readiness checks to post-report implementation, we stand by our clients beyond just report delivery.
Our focus is not just on issuing a report — it’s on protecting your business, strengthening your credibility, and ensuring you’re always a step ahead.
Compliance is not optional — it’s foundational. In Bahrain’s evolving regulatory environment, staying compliant with financial laws is essential for license renewals, bank relationships, investor confidence, and public trust.
We ensure that your business meets all key regulatory obligations, including:
Commercial Registration (CR) renewal audits mandated by the Ministry of Industry and Commerce
Bahrain VAT compliance audits and alignment with NBR documentation requirements
Central Bank of Bahrain (CBB) audit guidelines for financial institutions and licensed entities
Adherence to IFRS and IAS audit standards, accepted locally and internationally
Proper documentation for intercompany transactions, foreign investments, and capital structures
Audit trail support for anti-money laundering (AML) and due diligence
With us as your audit partner, you don’t just meet the minimum — you gain peace of mind that your business is operating within the full scope of Bahrain’s legal and financial framework.
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
With a reputation for precision, and excellence, we are here to support your business growth while ensuring compliance with Bahrain’s financial and regulatory standards.
Copyright © 2025 All rights reserved.
Accounting, VAT, & Audit Services by famabh