Fraud – Have you employed a thief?
As financial circumstances become tighter, some employees may be tempted to turn to committing fraud in your organisation.
Most business owners believe that appropriate internal controls are in place, particularly with regards to bank accounts.
The increasing use of internet banking and electronic payments however does give rise to situations where employees, who would not normally be cheque signatories, have access to those electronic systems.
Electronic payment fraud is easier to commit, and less likely to be uncovered, than the changing of details on a cheque. Make sure appropriate controls are in place over electronic payments. Such controls include:
· Ensuring two separate signatories are responsible for payments, including the transmission and password access.
· Having the proprietor/owner checking payments and authoring their transmission
· Increasing fraud awareness in the office.
Your Chartered Accountant is experienced in accounting systems and is an ideal person to offer advice in order to reduce fraud in your organisation.
