Skip to main content

How to prevent fraud in business: An investigation

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Hello readers, I hope you enjoyed part 1, part 2 and part 3 of this article. Today, I will be giving you a brief description on how to carry out a fraud investigation. A fraud investigation should be carried out after receiving complaints whether formal or informal or when it appears that a fraudulent action has been carried out.  The management must create a procedure for carrying out an effective investigation. An internal auditor could assist in evaluating the procedures stipulated by the management.

Procedures include planning the investigation, during this phase; would help investigators such as the internal auditors, forensic accountants , lawyers and others understand the situation during this period. Afterwards, the level of skills required to carry out the investigation should be determined. Evidences could be obtained via interviews, questions that will be asked must have been drafted in advance. Suspect(s) and withness(es) should be interviewed. Evidences can also be gotten from IT systems, ledgers, phone records and others.

Sufficient evidence will suggests that the fraud occurred. A written report of the result of the investigation must be documented. This will help improve the controls you have in place to prevent or detect fraud. The Company should also learn from the investigation and develop their systems to remove loopholes the fraudster(s) took advantage of.

Keep checking my blog regularly, Cheers!

Comments

Popular posts from this blog

Work-life balance: all should attain it

Hello readers, today I will be writing about work-life balance. According to businessdictionary.com, work-life balance "is a comfortable state of equilibrium achieved between an employee's primary priorities of their employment position and their private lifestyle." All work and no play makes Jack a dull boy, thus, you should find a balance between work and play. Here are some tips to help you achieve it.
1. Do not check your email (work) after working hours, this will help improve the quality of time you spend with your family and friends. Thus, you should not be distracted by work when spending time with your family and friends. 
2. When you decide to improve the situation of your work life balance, take it one step at a time. For example if you do not get to spend time in the evenings with your family during the week days due to coming back late from work, you should decide to spend one day a week and gradually increase it to two and then three till you get to spend the…

Eid Mubarak

The world of competence

Hello readers, it has been a while. Hope you did not miss me much, the good news is I am back now. Today, I will be writing about competence.
Competence is the ability that enables a company or an individual to deploy its resources effectively. It is neccessary for a company to have a competence target in all its business activities so as to deliver value to its customers. This will help create a competitive advantage for the company.
Competencies must provide value to customers. It must be unique or able to develop greatly or be better than that of competitors. New products and services must be able to be developed as a result of the competence. It must be difficult for other competitors to obtain or imitate.
Continually producing high quality products can make a company become a market leader (which is a core competence) as it provides a company with a competitive advantage. With high quality, higher prices can be demanded by the company from customers and the company will also be able…