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Efficient Techniques of Corporate Fraud Detection & Prevention

by Venus Detective Female detective agency

Fraud has become a prime concern in the worldwide phenomenon. It is a quite serious concern, and dwells in all countries and affects all types of business, small and big industries, and their profitability also. To get rid of it firstly, it is quite important to know ‘why’ fraud occurs and ‘how’ to combat it. The most effective way to detect fraud is an anonymous tip line (or website or hotline). According to the ACFE (Association of Certified Fraud Examiner) 2018 report of the Nations, tips are by far the most common method of initial fraud detection. There are some most common methods of detecting fraud

Internal Audits:  An internal auditor has also done lots of the same work as external auditors for fraud detection. According to ACFE, the internal auditor is the second most important method of fraud detection. The internal auditors manage and detect all types of frauds, but external auditors manage financial fraud issues. It is important because in most of the organization's fraud is identified only after it occurs.

External audits: AU-C Section 240, Consideration of fraud in financial Statement audit requires that financial statement auditors conduct their audits in such a way to obtain reasonable assurance, that financial statements are free from objects misstatement, whether caused by fraud or error.

Management Review: Much organization had their dedicated department devoted to fraud detection and information security. Such departments work under the control of a chief information officer, internal auditor, or controller. Or such departments managed independently in their functional areas.

Accidental discovery: In passive fraud detection, the organization discovers fraud by accident, unsolicited notification by another party, or confession. It occurs when fraudster frequently makes some mistakes by failing to adequately cover their tracks. Because of these reasons now efficient organizations started to train their employees to spot and report irregularities.

These are the topmost way that occupational frauds are initially detected. There are several ways you can minimize the occurrence of fraud by implementing procedures and controls.

·        Hire trustworthy Experts

·        Know your employees

·        Implement internal controls

·        Make employees aware/ Set up a reporting system

·        Monitor vacation balance

·        Live the corporate culture


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About Venus Detective Advanced   Female detective agency

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Joined APSense since, October 11th, 2017, From noida, India.

Created on Feb 18th 2021 04:09. Viewed 336 times.

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