Monday, April 12, 2010

Are you unwittingly creating an Environment for Embezzlement?

In the previous post, we listed the main motivations for fraud. However there needs to also be 'the opportunity' for fraud and embezzlement to be carried out. Opportunity is created when there is either an absence or weaknesses in internal control. The following factors enhance the probability of employee committing fraud or embezzlement.

  • Inadequate rewards
  • Inadequate internal controls
  • No separartion of duties or audit trails
  • Ambiguity in job roles, duties, responsibilities, and areas of accountability
  • Failure to counsel and take administrative action when performance levels or personal behaviours fall below acceptable levels
  • Inadequate operational reviews, lack of timely or periodic audits, inspections, and follow-up to ensure compliance with company goals, priorities, policies, procedures, and governmental regulations
  • Inadequate training on legal, ethical and security issues
  • Inadequate company policies
  • Failure to monitor and enforce policies on honesty and loyalty

Adapted from; Corporate Crime Investigation; Bologna & Shaw

As an employer, do you suspect you are the victim of fraud and/or embezzlement. If so feel free to contact Bluemoon Investigations, in total confidence, for a free no obligation consultation.

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