Corporate Fraud
Fraud is seldom witnessed
at firsthand. It's a crime that is often shrouded in ambiguity, and it's
sometimes difficult even to determine whether or not a crime has actually been
committed. Only the symptoms of fraud exist to alert management of wrongdoing.
Unfortunately, many such
fraud symptoms go unnoticed; and, in some cases, signals that are recognised are
not vigorously pursued. All businesses must learn to recognise employee fraud
indicators and discover whether the symptoms are the result of actual fraud or
if they represent other factors.
Most indications of
employee fraud fall into one of six categories:
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Accounting anomalies
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Internal control
symptoms
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Analytical anomalies
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Lifestyle symptoms
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Behavioural symptoms
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Tips and complaints.
Fraud occurs when
pressure, opportunity, and rationalisation come together. Most people have
pressures. Everyone rationalises. When internal controls are absent or
overridden, everyone also has an opportunity to commit fraud.
Detecting fraud is a matter of
acknowledging:
-
That fraud exists
-
That any organisation can become either
a victim of fraud or a perpetrator of fraud
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That certain weaknesses in internal
controls and human character can be conducive to fraud
-
That certain tests of internal controls
and tests of the organisation's motivational environment can provide some
insight on the possibility of fraud in that environment
Organisations make the mistake of not actively searching for
fraud. They tend to trust their employees and trust the procedures in place to
safeguard company assets.
It may be good business to trust employees and empower them
to make real contributions to the growth of the company. However, it is not wise
to turn a blind eye to signs that a trusted employee may be stealing.
These pages are designed to
aid managers and employees to identify potential fraudulent activity against the Council.
For more information please click the links below:
Fraud related documents - the following
sections include specific fraud related documents from various organisations.
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