International Fraud Awareness Week is an initiative to raise fraud awareness. Here are some basics that all organizations should follow to prevent and detect fraud, according to the Fraud Week website.
Establish a fraud policy
This policy outlines what activities are considered and how they should be reported to management or the board of directors. If you don’t have a fraud policy in place, there is no need to start from scratch. The ACFE has a sample policy that is a great starting place for most organizations. Just keep in mind that you have to make the policy for work your specific organization, so it’s essential to make modifications to the sample policy as needed.
Take the ACFE Fraud Prevention Check-up
Set up a whistleblower hotline
Most fraud is reported from employee tips, so it only makes sense to give employees a safe and confidential mechanism by which to report suspected fraud.
Take advantage of the ACFE’s anti-fraud resources
In addition to the sample fraud policy and the Fraud Prevention Check-up, there are some great (FREE!) resources here.
Your best bet to prevent or detect fraud, which can occur in any organization, in a timely manner is to have a level of awareness of the possibility and design internal controls accordingly.
Jessica Puckett, CPA, CFE