Question

Please write a two to three page double spaced paper exploring two main areas of employee fraud and fraud prevention.

Answer 1

Frauds are of many types and these can be seen anywhere, in any organisation. Frauds are done to achieve a personal gain (in moderator terms).
So, employees frauds are such frauds done by the employees of the company/organisation.
Also it can be said that employee fraud is one of the most expensive liability of any company.
There are several opportunities where the employees have full opportunity to steal, to do theft, get bride, do corruption and all these phones under the employees fraud. Employees conducts fraud sometime by doing asset misappropriation, doing various accounting unnecessary, doing payroll frauds and various other frauds.

The two main areas of frauds can be : asset misappropriation and bribery and corruption.

Asset misappropriation : involves various act of theft by the employee by tempering various invoices including inventory theft etc. It is also sometimes done by directly stealing cash. It also involves various forgrey done by the employee.

Bribery and corruption : the fraud done by the high profile employees counts to bribery and corruption. Employees take bribe and pass on the company's confidential information to outside. This type of fraud is way more damaging to company than any other fraud.

These fraufs can be prevented by :

• having a strong ethical environment within the organisation.
• ensuring proper workplace ethics.
• having a good communication with everyone.
• conducting various surprise checks of the workplace.
• creating strong internal control system.