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Management must do the next:
Establish the right culture
The companyís policy should show both employees and the lateral side world that the business enterprise takes the threat involving dishonesty, fraud, and larceny seriously. The companyís policy definitely states what is regarded as dishonest and warns any potential wrongdoers how the consequences of being caught would be serious. The effect therefore will be to deter potential wrongdoers. This will result in reduced losses from wrongdoing and reduced costs in respect of investigating any wrongdoing.
Establish a whistle-blowing policy
Employers need to be encouraging whistle-blowers to come forward since the quicker a business may well spot fraud, the much better. Not only does first detection diminish the harm to a firmís reputation, however it wastes less of managementís time frame, and ultimately costs this company less. This is why that has a robust whistle-blowing policy in place is good practice. Having such a policy might also dissuade potential whistleblowers from approaching the press as a first resort. In option, businesses need to engender a culture during which employees believe their concerns will likely be taken seriously, and of the fact that protection afforded by legal issues and policies is proper.
Identify the risks
One of this positive steps that management would be to ask their accountant to coach the ompanyís management and staff about how to identify the risks invariably employees and management donít realize the risks faced just by their organization. Without comprehending what the risks tend to be, they will be can not take corrective action.
Implement reliable controls
The companyís management need to established a code about conduct and whistle wasting policy. The company must segregate duties, implement real safeguards, and have self-governing checks. Management must moreover implement proper approval grades, have proper controls and also limit the overriding with existing controls. Management also have to implement an effective management system.
Increase awareness with the risks
Some of the methods that management might take to increase awareness for the risks faced by organisations include lectures to managing and staff on overall fraud awareness, presentation connected with case studies, articles for the company intranet and content in company magazines.
Recruit an appropriate people
Before you hire an exciting new employee, managers should stop and enquire themselves: ďDo I know enough regarding this person to trust them with my money top secret information and my popularity? ď
Many companies believe of which their recruitment procedures will address this question. A Mori poll unveiled that:
ē 30% of employees accepted to lying while making an application for jobs;
ē 18% of employees believe that it is necessary to exaggerate on their curriculum vitae;
ē 34% of managers do not check the background of applicants; and
ē 36% for organizations say that untruths with curriculum vitas (CVs) expense them significant time in addition to money.
Companies must test each new candidate carefully. Senior positions should be checked additional thoroughly as senior staff frequently have more opportunity to commit fraud like they are in positions of trust and usually have the capacity to authorize payments and grant contracts. They are also just about guaranteed to commit the type of fraud which might permanently damage your industry.
New employees are not truly the only employees that should be looked at, a review of employees could be an on-going process all over the whole workforce especially if a worker was hired when verification was less thorough or not really or a employeeís situation has changed to the situation where they now find themselves under severe financial constraints?
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