How to prevent fraud in business: An investigation

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Hello readers, I hope you enjoyed part 1, part 2 and part 3 of this article. Today, I will be giving you a brief description on how to carry out a fraud investigation. A fraud investigation should be carried out after receiving complaints whether formal or informal or when it appears that a fraudulent action has been carried out. The management must create a procedure for carrying out an effective investigation. An internal auditor could assist in evaluating the procedures stipulated by the management.

Procedures include planning the investigation, during this phase; would help investigators such as the internal auditors, forensic accountants , lawyers and others understand the situation during this period. Afterwards, the level of skills required to carry out the investigation should be determined. Evidences could be obtained via interviews, questions that will be asked must have been drafted in advance. Suspect(s) and withness(es) should be interviewed. Evidences can also be gotten from IT systems, ledgers, phone records and others.

Sufficient evidence will suggests that the fraud occurred. A written report of the result of the investigation must be documented. This will help improve the controls you have in place to prevent or detect fraud. The Company should also learn from the investigation and develop their systems to remove loopholes the fraudster(s) took advantage of.

Keep checking my blog regularly, Cheers!

Comments

Eid Mubarak

Hope you have a good one

The saverholic

Image courtesy of dan at FreeDigitalPhotos.net It involves minimal risk saving your money. I always say first save your money in an halal account, once it has reached a particular threshold start investing. The saverholic only saves and saves and saves and cannot afford to take well calculated risks. Because, all you do is to save money. Invest in other markets, the higher the risk the higher the return, diversify your investment portfolio. All individuals that have achieved financial growth of great heights are risk takers, and they know that some risk might turn out negative but they know is all part of the process. They learn from it and apply it to the next risk they take and eventually they become experts at the risk they take (risk taken should not be excessive(too much uncertainty)). Then they end up having 80% success rates which I think is good enough. Make sure your business is halal. Give charity regularly from your income, Allah loves charity an...

The need for constant power supply in developing nations

Hello readers, I will be writing about electricity today. I will be using Nigeria as a case study. Electricity is one of the factors that contributes to the success of an organisation. Developed countries have been able to maintain a constant power supply. If they are able to have constant power then it is achievable. Constant electricity could attract good companies, thereby creating employment opportunities. This could alievate poverty in the developing countries. Thus, the GDP (Gross Domestic Product) of the economy will improve. The challenge here with having constant power supply is also not to pollute the environment as fossil fuel is mostly used for the supply of electricity. Greener alternatives could be used such as tidal energy and wind energy. In my opinion, electricity could be constant in Nigeria if the industry is privatised. The privitisation of the telephone industry made mobile phone easily accessible by individuals. Most people own a phone, both ...

Islam and Business Finance

Search This Blog