Work as a team to complete this activity.
Refer to the list of fraudulent activities previously identified; now draft an organisational policy and step by step procedure to deal with such instances of fraud.
The organisation's Fraud Policy should be a short, precise document that can be understood and acted on by the appropriate personnel within the organisation. In broad terms, and in addition to the points noted above, the plan may also cover the following:
1. A general review of robustness of existing systems, procedures and controls in preventing fraud (1)
2. A means for regular testing of such controls (1)
3. The identification of assets (including corporate information and plans) most at risk (1) 4. An appraisal of the threat of fraud on those assets and how it might manifest itself (1)
5. The means of damage limitation and recovery of funds if fraud occurs (1)
6. An unequivocal statement that all fraud offenders will be prosecuted (1)
7. The steps to be taken in the event a fraud occurs and who is responsible for taking action including:
7.1. Assigning responsibility for an instant response to the occurrence (1)
7.2. Recovering funds (1)
7.3. Dealing with the media (1)
7.4. Preserving evidence and reporting to the police (1)
Procedure:
Step 1: Conduct a review of existing systems, procedures, and controls to assess their robustness in preventing fraud.
Step 2: Implement regular testing of controls to ensure their effectiveness in detecting and preventing fraudulent activities.
Step 3: Identify assets, including corporate information and plans, that are most at risk of fraud.
Step 4: Assess the potential threat of fraud on the identified assets and determine how it may manifest itself.
Step 5: Develop a plan for damage limitation and recovery of funds in case fraud occurs. This plan should include specific actions and measures to be taken.
Step 6: Establish a clear and unequivocal statement that all fraud offenders will be prosecuted. This policy should outline the organization's commitment to taking legal action against those involved in fraudulent activities.
Step 7: Define the steps to be taken in the event fraud occurs and assign responsibilities for each action:
7.1. Assign responsibility for an instant response to the occurrence. This includes activating an emergency response team and initiating immediate actions to minimize the impact of the fraud.
7.2. Develop a process for recovering funds that were lost due to fraudulent activities. This should include cooperating with law enforcement agencies, engaging legal counsel if necessary, and pursuing legal avenues for restitution.
7.3. Establish protocols for dealing with the media in case of fraud. This should include designating a spokesperson and providing guidelines for communication to ensure accurate and timely dissemination of information.
7.4. Outline procedures for preserving evidence and reporting the fraud to the police. This includes documenting all relevant information, securing physical and digital evidence, and cooperating fully with law enforcement agencies during their investigations.
By following this step-by-step procedure and implementing the fraud policy, the organization can effectively respond to instances of fraud, mitigate its impact, and take necessary legal actions against offenders.