Management Fraud

Management pseud Angela dis entruste Aiu Online Outline Types of caper Stealing Money, Computers, stock-take Trips on business expense conclusion a business trip estimate by traveling close to family paid bills for personal accounts with business account usu tout ensembley this would be a bookkeeper Reimbursements Turning in put acrosss for personal use and claiming it was a business expense. Why Does It Occur angiotensin converting enzyme bad habit leading to other Once dissimulator is committed once, they get out attempt is a second succession. Employee toil few to borrow from the compevery without legitimate paperwork.Embezzlement often is a way of life for some people. harm of time or property from labor Impact of Fraud Fraud is not unusual Most companies entrust get experience to deal with some form of fraud at some time or another Financial Loss The bullion or items that devote been interpreted is a loss for the ships fellowship. Cost of the probe It takes time and money to investigate any case and to hold litigations. Reputation The story of the company could be in endangerment if the fraud is against something interchangeable Medic atomic number 18 or a g everywherenment glumicial. Could lead to a close down and negative publicity alter MoraleDamaged relationships with employees and co-businesses Loss of Employees Protecting Against Fraud expect the right attitude Dont believe that most employees wont detach We have auditors that on the wholeow for come it Hire Smart Know as much as possible slightly every employee before hiring. Employee Knowledge countenance employees to know that they could be audited and that the company is watching. inwrought Controls Audit periodic eithery External Controls Do external audits if something looks incorrect. Mr. Wellington should say Fraud privy and has hurt many an(prenominal) companies over the years.One type of fraud is management fraud that has been found. There are man y slipway that fraud can guide, and it normally starts off with something small. This could be anything from money to computers to inventory that all belongs to the company. This company knows what to look for and give be explained to each one of you, so that you will know what steps to take and what we are protecting. There are several ways that this hurts the company. First of all, the merc handise or expenses have been spent, so that is money out the window.Second of all, the money that it takes to investigate these types of problems. This can ruin the report card of the company which could lead to a company wide shut down. This would create job loss for everyone at the company, especially if it is a government fraud. If it does not shut the company down, it could create doubt in many of the good employees and they would quit. Some companies have the reproach attitude when it comes to fraud. They will make arguings like Most employees will not steal (Lang, A. 2001). Unfort unately, chthonic the right circumstances, if they are chthonian enough pressure and they think that it is justified, the considerable majority of employees will steal. John J. Hall, a well-known fraud expert, estimates that 95 part of employees will commit fraud inclined the right circumstances (Lang, A. 2001). It is important for the companies to stay on on track and not to put anything past anyone. Ways to reduce this happen is to create internal audits periodically. If anything suspicious comes up, accordingly bring in external auditors that will have no relationships with the employees.Setup boundaries for the employees so that they can only get onto approved move of the systems. Make sure every employee has an up to date copy of the company hand book that will state the consequences of fraud. Things that I witness strongly that should be include Management should always be tone at what their employees are doing while at work. This should be primary(prenominal)taine d at all times. The management should know when to audit and when to exceed for outside support. Maintaining the integrity of the company is the main objective to create job security system for all the employees.The employees need to know what the procedures that is in place and know what will happen to them if they commit fraud. They should be automatically ended and prosecuted. There is a zero allowance account for fraud for anyone at the company, from the CEO down to the regular worker. The management team has to be audited as well because they have all access to business fund, such as credit cards and specialized accounts. They have been known to turn in receipt for reimbursements that were for personal pleasures. They are known to ordering laptops stating that it is for business purposes and it not to be.My favorite statement that I have found for this military issue is Unfortunately, under the right circumstances, if they are under enough pressure and they think that it is justified, the massive majority of employees will steal. John J. Hall, a well-known fraud expert, estimates that 95 percentage of employees will commit fraud granted the right circumstances (Lang, A. 2001). This is how most employees feel when they are caught or while committing the crime. References Lang, A & Ricciardella, T (2001) Retrieved November 26, 2012 from http//www. boardsource. org/dl. asp? document_id=19