MAS Project - Fraud - Help!

[LER]

Hi All, Please, please could somebody help me out with some ideas on fraud within a small business, every time I hand my project in, my teacher keeps telling me to add more about fraud. Its a small company with less than a dozen workers. Thereâ??s just one bank account & company credit card, cheques can only be signed by the General manager or one of the MDs. (I know managers of that level are capable of fraud, but how do you put that politely in the report?) So far Iâ??ve included the facts that staff can manipulate clock cards and try to claim for more time than is actually worked and also that the disorganised stock control means that items can be taken without managements knowledge or consent. Now Iâ??ve run out of ideas, please help!!!

[Lucyj]

Hi<BR><BR>I had a similar problem as I too work in a small company. I thought of any areas where a lack of segregation of duties was present. There were a few things that COULD lead to fraud within our company so I pointed these out, but then put in a disclaimer saying that I was not implying that any fraud was or would take place, only that it was a possibility within the current system. <BR><BR>How is your stock issued? Can anyone acces the stores? <BR>Does any employee carry out one whole process i.e checking in deliveries/prices and then processing invoices? Are purchase orders authorised and if so by who? <BR><BR>Hope this helps a bit.

[LER]

Hi, Thanks for the pointers, I could try and include a bit more about the actual ordering of stock and stationery etc..<BR><BR>I'd still be grateful if anyone can come up with any more suggestions. I reckon if my teacher had his way, the whole report would be on fraud!!

[smcgiff]

Hi Ler,<BR><BR>A few ideas for you to have a think about.<BR><BR>1. Expenses. Are they correctly controlled i.e. checked to receipts and signed off by a manager, only used for genuine business transactions i.e. Does the MD pay for his mistresses cosmetic surgery with the company credit card?<BR>2. Petty Cash/incoming mail. How is this dealt with in your company? Is petty cash accessible by everyone, vouchers received for cash taken?<BR>3. Wire transfers. These are usually signed and faxed into the bank. Is there a call back in place with your bank so that the bank call the signatories to confirm the wire. This avoids someone forging a signature and faxing the wiring instruction to their own bank account.<BR><BR>I get the feeling your teacher wants a bit of spice to brighten up her/his reading of the reports so why disappoint her/him?<BR><BR>happy inventing!<BR>Seamus

[ancsiga]

Hi,<BR><BR>I included the following ideas for possibility of fraud:<BR>Are credit card and financial details (paperwork ) safely locked away, so other employees would not be able to use them if somebody would wish to try?<BR>We were advised from our teacher, that fraud can also mean abusing companies resorces: like using telephone, stationery, e-mail,fax for personal use<BR>. Whilst not necessarily a problem if used occasionally and honestly, it may represent a significant exposure to the possibility of fraud if abused. In addition the personal use of the companyâ??s email system may also expose the company to other risks, for example computer viruses and the consequences of the company being legally responsible for the content of emails sent using the company facilities when employees send abusive, offensive or other illegal material.<BR>Employees are able to make personal use of the companyâ??s stationery. Once again this may not be a problem when used responsibly but is open to abuse. <BR>se.<BR><BR>I hope this help you .<BR><BR>Aniko

[LER]

Hi, Thanks for the suggestions. I have already covered some of these issues, but quite basic wording, maybe I should just add some long words in to make it interesting. I'm still also worried about &quot;potentially&quot; accusing the MDs of fraud!! I think that needs very careful wording.