Kim Charron and Robert Cornell (both Accounting), along with Rick Warne, published “Practical AI for Fraud Risk: Detection, Prevention, and Controls in Small and Medium-Sized Entities” in Strategic Finance. The article shows how small and medium-sized organizations can use accessible artificial intelligence (AI) tools to strengthen fraud prevention and internal controls by leveraging enterprise AI platforms, thereby improving oversight despite limited staffing and resources. It provides a practical framework for implementing AI-assisted monitoring through example prompts, data analysis techniques, and governance recommendations that enhance fraud detection without requiring expensive software integrations. The processes emphasize the importance of human judgment, data privacy, and sound internal controls to position AI as a cost-effective complement to traditional accounting and fraud prevention practices.

The Institute of Management Accountants (IMA) is one of the world’s leading professional associations for management accountants and financial professionals, representing over 140,000 members across over 150 countries. The IMA is best known for administering the globally recognized Certified Management Accountant (CMA) credential and for advancing excellence in management accounting, financial leadership, business strategy, internal controls, risk management, and organizational decision-making. Strategic Finance, the IMA’s flagship publication, reaches a broad international audience of management accountants, CFOs, controllers, finance executives, consultants, educators, and business leaders.