At every organisation it is important to keep fraud risk assessment at least onc

Question

At every organisation it is important to keep fraud risk assessment at least once in a biennium to avoid such complications occurance because of fraud.

Maximsation of fraud activities leads to fall in organisartional development , low harmonious relations among management and employees.

The risk assessment to find out the fraud generally happens in few departments of the organisation like

Techniques To Assess The Risk Of Fraud

Step1

Assess the history of employess at the time of recruitment, Observe everything in particular regarding character and behaviour of person,proper document verification and enquiry to the past company of employee may avoid the unpleasant behaviour's

Step2

Closer observations of management to different branches where there is a chance of fraud. Frequent audits and verifications are minimum duties of management to avoid fraud.

Step3

Perfection of duties seperation to the employees like monitoring and processing the orders of the customers and billing the amount should not be assigned to one individual it should be under the hands two or more persons to avoid cheating on money issues.

Step4

Accounts and all the information relating to financial matters and asserts must be available to the management and important stake holders at any time to verify or to modify it .It might be good to online the information and keeping a password and proper protection mostly avoids the misusage of information.

Step5

Evaluations of past activities and procedures over controlling fraud on different departments and taking help from the fraud detecting agencies as they work at particular organisation for few days and take personal interviews, enquiries and obseve the behaviours of the manpower to give most probably clear information on present situations and forecasting situations relating to the fraud.

Step6

Fraud Traingle

Fraud traingle is one of the effective way to reduce the risk of fraud as this triangle consists of the key points as

this technique gives some key points to minimise the risk as

Under this technique need to have the pressure points that top managment of senior people and board of directors in creation of harmonious organisational culture and code of conduct.

Rationalize the past and present situations and examine the several behaviours and areas of fraud and take actions according to the rationalized information.

Mostly the opportunity of the employees lead to take chance to fraud to avoid it company has to take care of important financial decisions and documents should be handovered by two or more persons.

Explanation / Answer

Review the concepts and application of the various techniques to assess the risk of fraud in an organization and determine which is the most viable across the greatest number of circumstances.

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