Basic Strategies For Fraud Prevention In Businesses Financial Services Review
Financial Services Review talks about Basic Strategies For Fraud Prevention In Businesses Employees fraud is a major problem faced by organizations of all types, sizes, locations, and industries. While we would all like to trust that our employees are loyal and work for the benefit of the organization (and most likely are), there are still many reasons why employees may perform fraud and many ways in which they could do so. Types of fraud in business
• Fraud comes in several forms but can be broken down into three categories: misappropriation of assets, corruption, and fraud in financial statements. Asset misappropriation, although less costly, accounted for 90% of all the fraud cases reserach. These are offers in which an employee steals or exploits the resources of his organization. Examples of misappropriation of assets include stealing cash before or after recording, making false claims for reimbursement of expenses, and taking non-cash assets of the organization. • Financial Statement fraud accounted for less than five percent of the cases but resulted in the most median loose. These are offer that involve omitting or intentionally missing information in the company’s financial reports. This may be in the form of fictitious revenues, hidden liabilities, or inflated assets. • Corruption fell in the middle and accounted for less than one-third of the cases. Corruption schemes occur when employees use their influence in business transactions to their advantage while violating their duty to the employer. Examples of corruption include bribery, extortion, and conflict of interest. • You might be inspired by the employees who haven’t missed a working day in years. While they may seem like faithfull employees, it could be a signal that these employees have something to hide and they are worried that someone will find their fraud if they have been out of office for some time. It is also a better idea to turn employees into different jobs within a company. This may also reveal fraudulent activity since it allows a second employee to review the activities of the former. Financial Services Review
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