Question

How would a CFE devise a plan to prevent subsequent employee fraud?

Answer 1

Although the prevention of fraud is always less costly and more effective than fraud detection (and subsequent investigation), however unfortunately prevention is not always possible. This the reason, as CFE’s Certified Fraud Examiners (CFE) we must all be heavy promoters (and supporters) of client internal audit functions

The CFE devise a plan to internal audit that includes the procedures to identify or prevent significant incomplete, inaccurate, or unauthorized transactions; unreliable financial reporting; deficiencies in safeguarding assets; and deviations from regulations, laws, and institutional policies. When effectively designed and implemented, internal audits gives directors and senior managers with timely information in regard to weaknesses in the internal control system and thus facilitating timely remedial action and prevent subsequent employee fraud. Each institution is required to have an internal audit function appropriate to the size and the nature and scope of the activities