Frauds are present from ancient times and we can find it everywhere. The topic of fraud, embezzlement, corruption, distortion of information represents the scope of forensic accounting. In this profession are required diverse knowledge and skills that are primarily related to accounting, auditing, economics, statistics, and informatics, knowledge of legal regulations and possession of investigative skills. Prevention and early detection of fraud are always preferable to intervention after the event. One very effective method of prevention is the pro-active identification of fraud indicators. Therefore, there are a number of recognised warning signs or red flags which may indicate that someone within the organization is engaged in a fraudulent activity, but at the same time do not constitute proof that the fraud has been committed.