How To Define Fraud Review to Some Extent?
You can describe fraud as being similar to a serious disease. Unless it affects you in some way directly, you give the subject very little thought. Yet both problems are happening all around you, and as with the case of your health, a little prevention can go a long way.
Complacency is the biggest contributor to the problem of fraud risk. These days most businesses will have accounting controls over its finances that are intended to prevent problems occurring. These will typically be passwords for computers, reconciliations of various numerical processes and supervision of financial and other business activities.
However, these accounting controls themselves will not prevent fraud. They are essential and will reduce the risk of fraud somewhat, but as a sole fraud prevention tool they are inadequate. The cunning criminal can get round any accounting control if not monitored, by searching for its inevitable weaknesses. But consider this – he or she is more likely to look for such a chink if the perception is that nobody cares about the problem of fraud. Should a person prepared to comit fraud believe his only enemy is a feeble line of accountancy controls then he will focus his efforts on finding a way to circumvent them. This happens by producing forged paperwork, knowledge that errors are never checked or colluding with other like minded dishonest staff.
If on the other hand there is someone looking over his shoulder, asking the question ‘is there any fraud going on?’ the fraudster will be less likely to begin to commit fraud. This does not mean that your business has to be oppressive, with the fraud prevention police strutting around your factory or offices! This means that all the workers must be fully aware of the fraud problem and have it ingrained in their work ethic that fraud seriously threatens their future job security. One of the best ways of achieving this is through the fraud review.Henan Hongxing Mining Machinery Co., Ltd is the professional manufacturer of complete sets of mining machinery, for example,cone crusher,stone crusher Welcome all of you to visit our official website.cement making machine:http://www.hx-crusher.com/cement_production_line.html
The fraud review, sometimes called a fraud audit, is a simple process that is cost effective, efficient and can substantially reduce the risk of fraud in your organisation. In the event that you already possess a formal internal audit team you could use this to undertake fraud reviews. With a little specialised training it is possible to divert part of their resources to better effect thus costing little or nothing to introduce. Thus, apart from the initial training of staff within your existing workforce, installing an effective fraud awareness environment can cost very little yet may even save your business from a future serious attack of fraud that could mean failure! It may also have the advantage of reducing petty expense claim exaggeration and pilfering.
The process of introducing the fraud review couldn’t be easier. An experienced fraud practitioner will spend some time in your business understanding the processes that are taking place. This will take place in the head office of the parent organisation and likely take around one to two days. At the end of this time, depending on whether the fraud review is to be outsourced or in house audit skills are to be employed, the fraud expert will present a fraud awareness training course to staff. The service package puts in place an overall policy for fraud, improving the culture of awareness and building an ever strengthening barrier against fraud that then business must maintain. If in-house resources are not being used, the fraud expert might well be asked to visit outlying subsidiaries and divisions of the business, and also return to the parent from time to time.
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