Question

Keeping in mind the importance of fraud prevention, please select a company that your are interested in and that is publicly traded.  You can access annual reports on line in the company investor relations page.  Please identify your company and post in the discussion forum  the actions that they have taken to prevent and detect fraud. Please support your work with relevant references and copies of the documents.

Answer 1

Fraud is an act of unlawful gain without hurting physically to others. This is a secret act of stealing benefits.

This is a publicly traded company manufacturing pet bottles. The name of the company is “M. Inc”.

The recent annual report of the company shows that they are very serious about frauds, and have taken various steps for preventing those.

These are as below:

1) Corruption all rounds: If everybody becomes corrupted, preventive measure can’t be useful. Therefore, the company has taken awareness program through which staffs are motivated to work. They are praised and awarded time to time.

2) Double checking: Works are double checked (like invoices are signed by two authorized persons) before going into final approval. Such detection process is very helpful.

3) Rotation of duties: Departmental staffs are rotted frequently (like the supervisor of machining to consumable store) so that no one can make a field of doing fraud. If a person works in a particular post for long time, he/she can utilize his/her resources for doing fraud. This is prevented through the rotation process.