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Finance & Accounting
Pages 3 (753 words)
Name Institution Subject Lecturer Date Employee Fraud Introduction Auditing involves the process of examining the financial statements to be able to prove whether the company’s affairs are true and fair. Auditors who conduct auditing should be independent of all the stakeholders in the organization.
This will ensure that they are correct and functioning in the right manner. 1. The auditors should help the management device means of preventing the fraud. The management should also put an internal control system that will help them prevent and curtail the fraud. This can be achieved by encouraging employees’ rotation in their duties. This will help remove the employee colluding with the customer from her position and hence will not have to give the customer the goods. This will also ensure that there is no collusion among the employees themselves to defraud the organization. To prevent further fraud resulting from the employees colluding with the buyers the organization should also ensure that the employees are paid well and are put under close supervision. They should also mechanize the system and allocate various people specific duties to minimize theft. For example, one worker should be charged with making the products inventory while another one is mandated with collecting money from the customers. At the end of the day, these two should balance the sales with the money they had gotten to identify any mistakes that would have occurred and when they occurred and who was responsible. ...
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