Preventing Employee
Fraud
1. Do you know what
types of cash collecting procedures your company uses to safeguard against
fraud?
2. In today’s economy
we assume that fraud may be more prevalent because employees may be more
desperate for money. The reality is that many companies are closely monitoring
their financial situation – cutting jobs, decreasing expenses, monitoring cash
flow. Employees are well aware when these cost savings methods are implemented
in their company, so do you think this could actually act as a deterrent to
fraudsters?
3. When large
companies have a centralized payroll department, how can they be sure that new
employees who have all the paperwork are really employees?
4. What other ways can
we detect if someone is booking false revenue?
5. Aside from showing
statistics of fraud and quoting company policy, how do you explain the
importance of approvals to management?
6. There was an
obvious lack of controls in this procedure. What type of fraud could have
occurred in this company and what controls would you put into place to avoid
that fraud?
7. As an auditor, is
there a method we can use to detect if a small business owner is skimming when
there is no inventory?
8. What are some of
the implications of assessing control risk too low?
