Fraud Prevention and Management Recommendations
Fraud Prevention and Management Recommendations Paper
CJR-334-Z1 Economic Crime Investigation
October 29, 2012
Fraud Prevention and Management Recommendations The purpose of this Fraud Prevention Plan is to set out the approach to dealing with fraud risk within our organization. In order to prevent the types of frauds that have already occurred within our organization it will be necessary to create “a culture of honesty, openness, and assistance…..fraud prevention is where the big savings occur” (Albrecht, Albrecht, Albrecht, & Zimbelman, 2012, p.103). What is required is the implementation of a comprehensive hiring, fraud, and ethics training program with strong controls, with punitive treatment of fraud offenders. “Research confirms that anyone can commit fraud. Fraud perpetrators usually can’t be distinguished from other people on the basis of demographic or psychological characteristics.” (Albrecht et al. 2012, p. 33). The value of an effective fraud prevention program requires several components. The lack of fraud prevention leads to enormous risk. The corporation will need to install processes and controls to ensure that honest people are hired. When candidates are going through our interview process they will need to be thoroughly vetted on the accuracy of their work history, education, and stated accomplishments. In addition to the standard practiced of contacting references provided by the candidate, these referenced individuals will be asked to provide additional references. The result of checking references provided by the initial reference will in many instances allow for greater insight into the true character of the candidate. The Director of Human Resources should investigate the potential of having a pre-employment Business Ethics Assessment completed and evaluated for each potential new employee. The assessment will measure each candidate for knowledge of the application of ethical principles in various workplace
CJR-334-Z1 Economic Crime Investigation
October 29, 2012
Fraud Prevention and Management Recommendations The purpose of this Fraud Prevention Plan is to set out the approach to dealing with fraud risk within our organization. In order to prevent the types of frauds that have already occurred within our organization it will be necessary to create “a culture of honesty, openness, and assistance…..fraud prevention is where the big savings occur” (Albrecht, Albrecht, Albrecht, & Zimbelman, 2012, p.103). What is required is the implementation of a comprehensive hiring, fraud, and ethics training program with strong controls, with punitive treatment of fraud offenders. “Research confirms that anyone can commit fraud. Fraud perpetrators usually can’t be distinguished from other people on the basis of demographic or psychological characteristics.” (Albrecht et al. 2012, p. 33). The value of an effective fraud prevention program requires several components. The lack of fraud prevention leads to enormous risk. The corporation will need to install processes and controls to ensure that honest people are hired. When candidates are going through our interview process they will need to be thoroughly vetted on the accuracy of their work history, education, and stated accomplishments. In addition to the standard practiced of contacting references provided by the candidate, these referenced individuals will be asked to provide additional references. The result of checking references provided by the initial reference will in many instances allow for greater insight into the true character of the candidate. The Director of Human Resources should investigate the potential of having a pre-employment Business Ethics Assessment completed and evaluated for each potential new employee. The assessment will measure each candidate for knowledge of the application of ethical principles in various workplace
References: Albrecht, W.S., Albrecht, C.O., Albrecht, C. C., & Zimbelman, M. F. (2012). Fraud Examination (4th ed.). Mason: South-Western Cengage Learning American Express - Company Code of Conduct (2006). Retrieved February 8, 2008 from http://media.corporate-ir.net/media_files/irol/64/64467/2007_AXP_COC.pdf Retrieved October 29, 2012 from http://www.shl.com/us/solutions/products/?utm_ source=homepage&utm_medium=sidebar&utm_campaign=catalog-search Retrieved October 29, 2012 from http://www.coso.org/documents/Internal%20Control- Integrated%20Framework.pdf Retrieved October 30, 2012 from http://www.acfe.com/rttn.aspx Skalak, Steven. “Up for grabs.” Business Finance (May 2008). Retrieved October 30, 2012 from www.businessfinancemag.com/article/grabs-0503 Swafford, M. (2012, February 20). You 're Working Hard - Is Your Fraud Prevention Plan? Retrieved October 30, 2012 from http://www.plantemoran.com/perspectives /articles/2012/pages/ you-are-working-hard-is-your-fraud-prevention-plan.aspx