Accounting and Financial system is most susceptible to various threats both external and internal. One can combat threat to a certain extent.
There are various threats and vulnerabilities to which business today is exposed. They could be:
• Unforeseen natural hazards such as floods, earthquakes, or acts of terrorism,
• accidents or deliberately damage or destroy,
• application error, hardware or network failures
Many organizations have implemented Internal Control System to carry on business in an efficient manner. Various internal control measures are independent audit by third party of the entire system, periodical reconciliation of the outstanding balances with third party as also Bank Statements.
Human Resource is one of the most valued and also critical asset of an organization. Any policies, procedures, system are all meant for them and drafted by them. So there should be utmost care in selecting the right man for right job. It is always required to obtain full information about the employee, his/her background check, awareness among the employees of the importance of the system, getting them in dummy fraud detention drive, segregation of duties, prevention of unauthorized system access, mandatory core leave at regular intervals, job rotation, etc.