Be aware of Gambling-Related financial risks

Credit to Stabilis Chartered Accountants for sharing insightful information:

With 24/7 access to online gambling via mobile apps, gambling-related   issues are increasing.  While gambling itself does not imply wrongdoing, excessive or problematic gambling can significantly affect a person’s /   company’s financial position and increase the risk of misstatement, fraud,  or going concern issues.  It also causes impaired judgment due to financial stress and causes reputational or regulatory exposure.

What to look for:

Unusual cash withdrawals of frequent transfers to betting platforms

Gambling transactions inconsistent with known income / business activities

Deteriorating liquidity, recurring overdrafts, or unexplained borrowing

Difficulty meeting tax, loan, or supplier obligations despite stable income

Inconsistent explanations for missing funds

Pressure on auditors to rush work or overlook discrepancies.

Auditors are not expected to diagnose personal issues, but awareness of these indicators supports appropriate risk assessment, audit planning, and escalation in line with firm policies and professional standards.

If you and your business are at risk because of gambling habits of an owner of manager, this may help to detect it and please, please, please get help.  This is a pandemic in our society which is causing unimaginable financial stress in families and businesses. It will not stop on its own—stop it now.