Unformatted text preview: Prevention programs
Fraud Prevention programs
Organisations with successful fraud prevention programs often package fraud together with other loss issues such as health & safety violations, discrimination, and environmental and other concerns. Prevention Techniques
Prevention Techniques Educate employees Provide all employees with a wallet size card to carry. On this card are four actions they can take if they suspect fraud
Talk to their line management
Call Internal Audit
Call External audit
Provide information anonymously Early Detection
Early Detection Unfortunately, no organisation can totally eliminate fraud, no matter how effective the prevention programmes are. Early detection is the key. If fraud can be caught at an early stage financial exposure can be limited and any negative publicity avoided. Fraud reporting
Fraud reporting It is extremely important that fraud reporting be facilitated.
Fraud is much less obvious and employees are usually concerned about repurcussions
The symptoms are usual evident but reporting is inhibited by uncertainty
Nonreporting is unfortunate, since employees are in the best position to recognise dishonest behaviour or question irregularities in operations with which they are most familiar. Fraud Investigation
Fraud Investigation Investigation includes formal policies regarding who carries out all tasks of detection and investigation, including:
1. Who will conduct the investigation.
2. How the matter will be communicated to management.
3. If and when the Police will be contacted.
4. Who will determine the scope of the investigation.
5. Who will determine investigation methods.
6. Who will follow up on tips of suspected fraud.
7. Who will conduct interviews, review documents, and conduct other investigation steps.
8. Who will ultimately determine the corporate response to fraud, discipline, control, and other related matters. Action
Action There should be no uncertainty about action steps fraud perpetrators should be prosecuted to the fullest extent.
Most individuals also realise that organisations that take a tough prosecution stance will reduce future frauds significantly and be more profitable because...
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- Winter '14