It is indeed very misleading to assume that there are no fraudulent acts happening around us; and to think that we could stop it totally is a day dream. It is therefore imperative that individuals and corporate organizations embrace the idea of detecting, preventing and managing fraud instead of aiming to stop it; which is obviously unattainable. Several examples of internal control procedures as projected in accounting research topics has done justice to such control measures particularly in the banking sector. Meanwhile, this piece has focused more on managing fraud among employees.

Based on research, employee fraud constitutes over 5% of organizational annual loss and more. Some of these losses erupt from personal error, personal interest, bribery, extortion and other seeming smart acts. While these words may sound familiar and conventional, let’s look at what the real act sounds like.

What are the types and nature of employee fraud?

Omitting information in organizations report
I know this sounds really simple but many are guilty of this act, particularly secretaries, financial secretaries, treasures, receptionists, sales persons. People tend to leave a section of information as against the corporate body due to the implicating outcome on their side.

Misappropriation of corporate asset
This may come in the form of stealing funds before recording, giving a false statement about revenue, budget and expenses. This mostly costs the organization much more than planned.

Using organizational business for fraudulent and selfish ends
Now! Do not misunderstand me, it is entirely different to motivate yourself and ofcourse explore your career through several opportunity available within the organization or industry but to think of taking advantage of people under the umbrella of your organization in not acceptable.

People go as far as taking bribe for tasks they can’t perform, extort money through excessive charges and other corporate theft.

So, what are some control measures for managing employee fraud

Detect your organization’s vulnerability to fraud
One easy way to prevent fraud in business is to be able to identify lapses and gaps in terms of internal organization security. To ascertain this, an organization need to answer some security questions and strategically give employees a test ride within a time frame and take note of the observations.

Draft a fraud response plan
No one prays for mishap but staying alert to unforeseen circumstances is advisable. After identifying the loose security areas, do well to setup plan that is suitable to such security areas just in case they happen anytime in the future.

Periodic review
While some organization may take to daily review, some take to weekly reviews, monthly reviews and annual reviews for larger organization. The interval at which the review is done is as important as the review itself. It has a way of making every employee responsible to the organization’s asset, revenues, budgets and general expenses.

To wrap up, fraud in business cannot be totally stopped. Detecting and managing it earlier is a better way to control or prevent fraud particularly among employees.

Quite infirmative