Three practical steps towards detecting fraud

Author: David Alexander

Categories: Business risk, Employees, Fraud & Corruption
Tags: bribery, fraudster, prevention
David Alexander: "There’s probably three things that companies should do, if they’re concerned about bribery, corruption or indeed fraud.  Firstly is they need to understand what the risks are.  They need to understand where their businesses could be susceptible to fraud and bribery and to understand what the level of risk might be within those areas.  Secondly they need to take leadership from the top.  So senior management needs to get involved and they need to demonstrate that they are taking these issues seriously.  And then finally at a minimum there needs to be a process of awareness, a training programme within the business.  The most likely person to detect fraud or to detect bribery is a fellow employee, it’s not management, it’s not the internal auditors, it’s not the external auditors.  And the reason why it’s the fellow employee is that he is there or she is there 365 days of the year and knows the business and knows what’s going on.  But what they don’t know and they don’t understand necessarily is the...of fraud.  So you need an awareness programme that brings peoples…that lets people understand what the symptoms are and what to do if they suspect and those symptoms."
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