Fraud - Something Even Those You Trust Don't Tell You About
As I told you yesterday I attended a networking meeting where we heard a talk by Price Waterhouse Coopers.
The talk was on fraud.
I've seen fraud in action in several companies and I was impressed with the consultants down-to-earth approach and knowledge.
I particularly liked her summary of questions to ask yourself. Just so you can check whether you're about to be defrauded. So I asked her if I could see her summary.
She's kindly sent me the presentation and I'll set down the 6 questions she suggests:
- Is fraud treated as a business risk in my company?
- Do I know all the frauds that my business is exposed to in my industry?
- If I find fraud do I have a prepared consistent policy to deal with it?
- Does the staff know it is everyones responsibility to be aware of fraud: prevention and its detection?
- Have we a damage reduction plan prepared and ready to go if fraud is detected?
- Can the management information show fraudulent activity quickly?
Some of the signs to look out for if fraud is happening include:
- A member of staff not taking long holidays or sick - because "people will muck up the system"
- Costs going up but sales dipping
- An employee living beyond their means
- stock "shrinkage"
- overly complex accounts reconciliations
So there you go. Are you prepared?
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