logo

Preventing Embezzlement: Fraud Detection and Control

   

Added on  2022-12-20

13 Pages1064 Words95 ViewsType: 95
 | 
 | 
 | 
Fraud Detection and Control
Preventing Embezzlement: Fraud Detection and Control_1

Ideas on preventing
embezzlement
Knowing the employees: It is necessary to be alert of potential theft such as;
Apparent and sudden devotion towards work and working late.
Lifestyles that are above the level of salary
Strong objections towards the changes in procedures that are associated to
financial inventory or matters related to supply (Schuchter and Levi 2016).
Drugs and alcohol abuse
Moonlighting with the materials that are available at the business.
Evidence regarding compulsive gambling or tenacious borrowing.
Preventing Embezzlement: Fraud Detection and Control_2

Case Study Scenario
Analysis
Separating the Financial Duties:
By separating the financial duties of
Jared, Community Arts Organization
can decrease the opportunities of
fraud. For, Community Arts
Organization separating the financial
duties implies that;
Whoever cuts the checks must not
sign them;
Community Arts Organization
should handout the checks that
does not runs the payroll, it is not
using a direct deposit
Jared should not be allowed to
handle the accounting records or
mails, particularly anything that is
associated to the bank statement
Preventing Embezzlement: Fraud Detection and Control_3

Supervising the
employees Closely:
Close supervision should be paid
towards the payment, receipt
and preparation of purchase
orders.
It is necessary to separate the
preparation of purchase orders
of employees.
Close supervision should be paid
towards use of serially pre-
numbered purchase orders and
constant verification of income
orders must be made (Huber
2017).
Preventing Embezzlement: Fraud Detection and Control_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Communication in Accounting PREVENT EMBEZZLEMENT FROM SAMIRA
|14
|490
|94

Accounting and Financial Management
|5
|767
|20

Business Documents: Cash Book and Letter of Demand
|15
|2616
|62

Principles of Financial Management
|19
|5519
|83