Friday, November 22, 2013

How to Avoid Fraud in the Workplace

International Fraud Awareness Week (November 3-9) relayed the importance of awareness, detection and prevention in regards to fraud. For International Fraud Awareness Week, the CPA Practice Advisor recently posted an article regarding how to avoid fraud in the workplace. In that article, the Association of Certified Fraud Examiners listed the top 5 tips that will help employers detect and prevent fraud:
  1. Be proactive: Adopt a code of ethics for employees and management that must be followed, and make it known that unethical behavior will not be tolerated.
  2. Establish hiring procedures: Every company should have formal employment guidelines that are strictly followed. Conduct thorough background checks and take ethical compliance into consideration during performance reviews.
  3. Train employees: All employees should be trained in fraud prevention. Employees should know how to report suspicious activity and understand the warning signs of fraud.
  4. Conduct regular audits: Surprise audits are the most effective and should be done routinely, especially in financial and inventory departments.
  5. Call an expert: If fraud examination is not practiced by your business, hire an expert to conduct regular examinations.
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