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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?
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