The fundamentals of Employee Fraud
We’re always on the lookout for good resources to help organisations improve governance, develop best practice and protect themselves. One critical area is the issue of employee fraud. Here’s an excerpt from CPA Australia’s white paper on the subject with a link to the full document below:
Employee fraud is more common than most businesses think. It can have differing impacts on the success of a business. In the most serious of cases, employee fraud can lead to business failure and destroyed careers. Misplaced trust, inadequate hiring and supervision policies, and a failure to implement strong internal controls create an environment that is ripe for an employee to commit fraud. Employee fraud is therefore about opportunity. Subsequently, businesses should take steps to reduce this opportunity.
The following guide includes:
• an overview of fraud, including common examples of fraud
• examples of strategies to reduce the risk of fraud
• information on what to do when a fraud is detected.
Businesses designing strategies to reduce the risk of fraud will have to balance their desire to minimise such risks with the business needs. In other words, a business must avoid becoming so focused on reducing the risk of fraud that it impairs the ability of the business to meet its commercial objectives.
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