Development of an Anti-Fraud Program A typical organization loses a certain perc

Question

Development of an Anti-Fraud Program

A typical organization loses a certain percentage of its annual revenue to fraud. Fraud occurs regardless of organizational size or type. Every organization is vulnerable to fraud. Fraud risk must be reduced as much as possible. Hence, preventing, deterring, and detecting fraud are crucial. Deterring and preventing fraud can be more economical than detecting, investigating and recovering from fraud after-the-fact. These anti-fraud measures must start at the top and be communicated to all levels of the organization. They must go beyond internal controls and must be implemented on a cost-benefit basis.

In a nine- to 11-page, not including the title and reference pages, double-spaced paper, develop an anti-fraud program, or model, that can be implemented in an organization. This model, if applied correctly, must be efficient in preventing, detecting and deterring fraud. At the minimum, your model must address the following factors:

Fraud risk

Fraud risk assessment

Employees’ behavioral expectations

Fraud prevention policies and procedures

Fraud detection policies and procedures

Fraud deterrence policies and procedures

Cost-benefit analysis.

Explanation / Answer

It’s been firmly believed that for an effective and efficient anti-fraud program to successfully be executed and implemented in an organization persistently needs a thorough examination and evaluation of the current state of affairs of the organization which basically involves carrying out a fraud gap analysis by assessing and appraising the financial processes rendered to clients and actually estimating the extent of fraud loss that can take place as this can eventually facilitate to determine the efficacy and usefulness of the current anti-fraud program.

Thus an in-depth assessment and evaluation will indeed facilitate the organization to clearly identify and acknowledge the systems that indeed require protection from the vulnerability of fraud being committed by individuals from within and outside the organization however in fact it requires outlining a structured framework by the top level managers which indeed can facilitate to effectively and efficiently prevent such frauds from being committed.

Furthermore every process exposed to end users for instance making a payment via a mobile app etc. is a target for cyber criminals. Thus decisions about protecting each process should consider the potential exposure and probability to minimize the possibility of fraud being committed thus its very crucial and significant for the enterprise to effectively and efficiently demonstrate, scrutinize and safeguard each process to avert any such fraud being committed.

A fraud risk assessment indeed facilitates to recognize and acknowledge and evidently evaluate and determine the fraud risks before they actually become a genuine threat for the organization. Thus it’s very crucial and significant that the evaluation process implemented is custom-made indeed to suite the enterprise specific needs while covering all susceptibilities that can guide to deceitful activities. Furthermore all existing policies and controls implemented indeed requires a cautious scrutiny and probable fraud possibilities are indeed carefully identified and acknowledged to alleviate any kind electronic fraud.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.