How would a CFE devise a plan to prevent subsequent employee fraud.pdf
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Certified Fraud Examiners (CFE) should advocate for robust internal audit functions to prevent employee fraud, as prevention is generally more effective than detection. A well-structured internal audit plan focuses on identifying and preventing issues like inaccurate transactions and compliance failures, thus providing timely information to management about control weaknesses. Ultimately, the effectiveness of internal audits is crucial in enabling organizations to take corrective actions and mitigate the risk of future fraud.
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How would a CFE devise a plan to prevent subsequent employee fraud.pdf
- 1. How would a CFE devise a plan to prevent subsequent employee fraud? Solution ANSWER: 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