Is preventing fraud like playing poker?
If you’ve ever played poker, you know it’s not just about the cards you’re dealt — it’s about how you play them. You bluff, you read the table, and sometimes you tip your hand on purpose to change the game. Auditing works the same way. The best auditors aren’t just number checkers. They’re strategic players who use reasoning, timing, and communication to influence outcomes and to prevent fraud before it starts.
Strategic Reasoning in Auditing
Like a poker player working a table, skilled auditors use strategic reasoning to spot patterns, challenge assumptions, and test reactions. When it’s clear the numbers are being watched, the risk of manipulation drops dramatically. A new study found that when auditors think ahead and anticipate where and how fraud could happen, it can actually reduce fraud in the first place – if it’s communicated to the potential fraudsters. While we know proactive oversight is better than reactive damage control, the key piece is to communicate the process to people, letting them know that if they commit fraud, there’s a high likelihood of being caught.
The Numbers are Being Watched
If the numbers are accurate and reviewed by an outside source, that’s a deterrent. If everyone knows that outside source is digging in with a mind toward finding fraud, it’s an even bigger deterrent. The role of these controls act like “table stakes” in poker: they’re the minimum requirement to play. If the stakes are really high, you’re likely to stop a lot of fraud before it starts. Competent, independent auditors keep everyone honest because they change the perceived risk/reward equation for committing fraud.
Strong Processes + Visible Oversight = Fraud Prevention
Fraud is harder to attempt when people know:
The data is accurate and reliable
The numbers are being monitored closely
There are consequences for manipulation
Texas Hold ’em
Writing this reminded me how broad the accounting world really is. It’s full of interesting people and diverse opportunities. It’s not uncommon to start in accounting and end up in audits, tech, operations, or entrepreneurship, like I did. And that’s a good thing.
In poker, you don’t have to play every hand perfectly to win, but you do have to make sure your opponent knows you’re paying attention. The one downside to this strategy is that it can make fraud more difficult to find if it does occur. In other words, when you raise the stakes, you get bigger players in the game. The best bet is to let people know you’re good, but don’t tell them all the details, just in case they still think they can win. Pay attention to how much information you give away, but let them know they’re at the big table. In finance, that attention is what keeps the game fair — and the stakes in check.
We specialize in high-stakes audits, cleanups, and consulting. If you want a professional at your audit table, give us a call.
All my best,
Alex
Inspired by the Phys.org’s: Auditors can prevent fraud just by tipping their hand.
It’s official: LEGO is a well-being purchase, according to Deloitte
Article on Brick Fanatics.
Photo by Xavi Cabrera on Unsplash.
Deloitte now considers LEGO an official wellness expense. Employees can use their $1,000 well-being subsidy — which already covered gym memberships, spa treatments, and other self-care options — to buy LEGO sets.
It might sound quirky, but it makes sense. Stepping away from screens, focusing on a hands-on project, and letting your creativity take over can be a surprisingly effective way to recharge. Building something piece by piece is equal parts focus, patience, and fun — all of which can help reset your mind for the next challenge.
In finance and accounting, where attention to detail is everything, activities that improve focus and lower stress can be performance tools. Sometimes the best way to keep the numbers sharp is to step away from them for a while. So the next time you’re deep in spreadsheets or financials and need a break, maybe the answer isn’t another scroll through your phone. Maybe it’s a pile of LEGO bricks waiting to become something new.
Strong feelings on limiting the use of CPStrong feelings on limiting the use of CPA
Article from Journal of Accountancy.
Photo by Kaboompics.com on Pexels.
Titles matter because of what they signal.
The CPA designation is more than three letters. It represents trust, technical expertise, and a commitment to the public interest. That’s why proposals to limit its use stir such strong reactions in the profession.
We see this in our work every day. When a CPA signs off on financials, it’s not just a rubber stamp, it’s a signal that the numbers have been prepared and reviewed with rigor. It tells clients, investors, and regulators that the information is dependable. Remove or dilute that signal, and the perception of quality changes too.
More than ever, financial transparency is under pressure and the pace of business is accelerating, the CPA title is both a credential and a safeguard. It’s a way to say: “This work meets the highest standard.”
So, is there a legitimate reason to stop someone from displaying their CPA title?
How portfolio companies can create additional value through internal controls
Article from DELOITTE.
Photo by Pixabay on Pexels.
Growth grabs headlines. But in private equity, internal controls build value.
Strong, well-designed controls are the framework that holds a business together as it scales. They deliver more reliable financial information, identify performance drivers, and uncover efficiencies that support scale. This results in improved, streamlined outputs that are more reliable and provide more information.
These controls give leadership (not just the CFO) a clearer view of operations, helping them make better, faster decisions. In PE-backed companies, that clarity is a competitive advantage. But it’s also a competitive advantage to any business who wants to sell, grow, or just run more smoothly with less stress. And the bonus is the better your controls, the more your company is worth, should you ever need or want to sell it.
At Imperial, we see the same truth: growth without controls is fragile. But when you pair ambition with strong systems, you get a company that can scale, adapt, and hold its value over time.
Other articles we are reading:
NCAA Player Pay Deal Asks Deloitte to Measure the Unmeasurable, from Bloomberg Law.
Thrive-backed accounting firm Crete to spend $500 million in AI roll-up, from Reuters.
Real-life ways accountants are using AI, from Journal of Accountancy.
Audit Prep
At Imperial, we don’t just support your audit—we help you succeed at it.
Our experienced team works behind the scenes to clean up financials, fix reporting issues, and build the documentation you need to get through audits smoothly. Whether you’re onboarding a new client, catching up before an audit, or trying to avoid future issues, we make sure your books are in order and your team is prepared.
Audit-ready books
Clean reporting and documentation
Confidence going into your next exam
Let’s take the pressure off your audit.
Visit our Audit Preparation Services page to learn more, or give us a call: 713-970-1163.
Alexander Brokhin
Founder & CEO, Imperial
alex@imperial-texas.com
“I am extremely proud of the talent behind the firm. I work with an incredible group of professionals and look forward to the continued growth and success of our company. I am humbled by the loyalty and wonderful relationships we have with our clients. Thank you for allowing us to support you.”
