Employee Insider Fraud
As organizations struggle to remain relevant and competitive in the fast-moving global economy, it is expected that a few individuals will undoubtedly seek to reap from where they did not sow. Employee fraud is becoming more and more difficult to track due to the continuing process of technological advancement. The matter worsens when those tasked to deal with fraud lead the fraudsters from the controls of leadership. This discussion, in addition to exploring the roles of both employees and managers in insider fraud, will also focus on the methods used by the organizations to detect and prevent insider fraud. The discussion will also feature the gaps in literature as have emerged in the course of the review. First of all, dissertation sample shows that it is imperative for institutions to create a useful framework "to detect and prevent fraud from taking place" (Bierstaker, Brody and Pacini, 2006). Some of the methods that have been employed by various organizations to detect and effectively prevent fraud include communication from the managerial level about the organization’s intolerance to fraud, ensuring that remuneration is done transparently, the continuation of employee screening even after hiring and creating an atmosphere where awareness on fraud is encouraged (PwC, 2012). A study in Malaysia found that enhanced as well as operational audits were methods used to efficiently detect and prevent fraud at the workplace (Othman et al., 2015). Besides, a good reporting policy coupled with the employment of forensic accountants was found to improve an organization’s success in detecting and preventing fraud. The need for an effective reporting policy is hailed by Wilson (2004) who cites lack of accurate reporting has led to difficulty in quantifying workplace fraud. These among others are some of the functions of a sound internal control system. An effective one goes a long way into ensuring that an organization stays committed to continually updating...
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