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Unformatted text preview: of the deterrent effect of prosecution.
The single greatest factor in deterring dishonest acts is the fear of punishment. Resolution & Analysis
Resolution & Analysis Resolution includes replacing the employee and closing the case.
Analysis involves management, audit, security, human resources, and controllers/finance people to determine why and how the fraud occurred.
In this step there is a focus on the individuals involved, the controls that were compromised or absent, the environment that facilitated the fraud, and so forth. It is important to understand the kinds of preventive measures that should be taken within the individual culture and environment in which the fraud occurred – i.e. what can be done to prevent the same fraud in future? Publication
Publication Publication means to depersonalize the case and publish it internally in a newsletter or article that is distributed to all employees not just to inform but also to provide a deterent.
Publication makes employees much more aware of the kinds of problems that can occur and more alert to similar schemes or vulnerabilities in their operations. Control Implementation
Control Implementation Controls and other measures necessary to prevent future occurrences of the fraud problem must be explicitly implemented with immediate effect.
Additional or new controlsmust meet the cost
effectiveness or “best value” test although the decision not to implement must be a conscious one based on costs and benefits, not a decision made by default because an analysis was not conducted. Compliance & Training
Compliance & Training All control systems must meet current legislation without abusing the rights of employees.
Appropriate training systems need to be prepared...
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- Winter '14