Question

Identify and define policies and procedures that deter occupational fraud/misappropriation of assets. Which one do you feel is most important? Why?

Answer 1

Following are the measures that should be implemented to prevent from Occupational fraud /Misappropriation of assets

1. No tolerance policy against fraud : Entites should implement no tolerance policy against fraud, so that it will de-morale employee for further frauds and errors

2. Actions to be taken against the person regardless of the job position , term or service: Generally employee with higher post/designated involved in frauds and employee with lower designation/role involve in misappropriation of assets. Strong actions should be taken against both of them , so that any further possibility of fraud /misappropriation will not arise.

3. Any losses resulting from fraud/misappropriation of assets will be recovered from the concerned person : Strong Policy regarding recovery of assets should be implemented against the persons who are involved in fraud/misappropriation, allegation of fraud should also be recorded in court of law.

4. Re-view of fraud Control Plan : Plan to prevent /detect fraud and errors should be reviewed periodically , so that no loop-hole exist in the existing policy structure

5. Compliance with law and stanwell’s policy and procedures: As stanwell policy is specifically designed to prevent from fraud and errors, by implementing such policy compliance requirement as well as strategic requirements are fulfilled .

6. Implementing Stringent Internal Control system to detect and prevent from fraud and error

All above measures will not result the entity to prevent from fraud and errors until entity implement strong Internal control mechanism, it helps entity to review, upgrade the above policy , Internal control provide three way solution –Preventive, detective , corrective .

So most important step is not to make the policy, main step is to have review the policy so designed and upgrade them timely with change in the environment