Imagine that a coworker wants to circumvent an internal control to steal money from your company.
Please respond to the following:
Imagine that a coworker wants to circumvent an internal control to steal money from your company. Speculate on two (2) internal controls that your coworker might attempt to circumvent in order to steal the money. Recommend two (2) actions that the company could take in order to prevent the theft.
Outline an anti-fraud program that you would implement at your company (current or previous). Suggest the approach you would take to sell this program to your senior executives. Provide a rationale for your response.
PART 2: RESPOND BELOW AND GIVE YOUR OPINION ON POST, POST MUST BE A MIN 200 WORDS
The two internal controls that a co-worker might attempt to circumvent to steal money from a company would be Establishment of responsibility and Segregation of duties. Establishment of responsibility is when you take control of someone else property. Establishment of responsibility requires identifying specified employees and granting those employees access to a specific task. A company can prevent theft by assigning access codes to the specified employees that keep track of transactions or task when performed. Establishment of responsibility will allow a company to assign responsibility when process and procedures are carried out according to the companies regulations. Segregation of duties: is when one employee’s work provides a reliable basis for evaluating the work of another, check and balances. A company can prevent fraud and theft from occurring if management has to sign off on purchases over a certain amount of money.
It is important to a company, small, medium or large to have a fraud prevention plan in place. Fraud cases were studied in the ACFE 2014 Report showed that fraudulent activities lasted an average of 18 months before someone detects that there is a problem. The anti-fraud program that I would use to prevent fraud would be Segregation of duties. I would choose this prevention because no one employee should be allowed to know a system or how it operates, and how the department runs. The most significant contributor to fraud cases is internal controls, which is followed by lack of proper management oversight and override of existing controls. (Jones, 2015).
Answer preview to imagine that a coworker wants to circumvent an internal control to steal money from your company.
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