In: Accounting
What are the steps in a fraud examination? Why is it important to follow these steps?
What are some of the guidelines related to the following:
Documentary Evidence
Electronic Evidence
Interviewing
Why is it important to follow these guidelines?
How may the internet and technology assist in a fraud examination?
Why is it important for an employer to have policies in regards to employees rights?
ANSWER:-
Fraud examinations are conducted to determine if fraud has occurred and if so to gather evidence of the crime. Fraud is usually considered a white collar crime and the examination will involve surveillance and analysis of complicated financial records.
Continued Next Page:
Another department that needs to be involved is the information technology (IT) department. The IT department might need to be part of an investigation to safeguard data until it can be analysed. IT personnel can also help identify what data are available and where, and they might be able to function as forensic investigators if licensed to do so. Again, management must restrict access to certain pieces of information on a need-to-know basis. If fraud occurs, it is likely that a computer was involved. If so, information technology (IT) department personnel might need to be part of an investigation to help identify what data is available and where it is located, as well as to help safeguard the data until it can be analysed.
The human resources (HR) department should rights of employees be consulted to ensure that the laws governing the in the workplace are not violated. Such involvement will lessen the possibility of a wrongful discharge suit or other civil action by employees. Also, involving HR personnel can help provide access to the organization’s policies and any employee information that might be needed.
Moreover, HR can help the team understand office procedures, and if needed, it can help place suspect employees on paid leave if necessary. Although the team might need advice from a human resources specialist, normally this person would not directly participate in the investigation. Generally, an employer can ask employees to keep an investigation confidential when there are legitimate business justifications for making such requests. However, it is usually not wise for management to implement a blanket policy prohibiting employees from discussing employee investigations, because doing so could violate certain employee rights. Some countries, such as the United States, guarantee private-sector employees the right to organize and engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. If an employer in such a jurisdiction has a routine policy or practice of asking employees not to discuss matters that are under investigation, the policy or practice might violate the employees’ right to organize and engage in other concerted activities.
Hence it is important for an Employer to have policies in regards to employees rights.
End of Answer……Thank You…..