Loss Prevention Policies

by Charlene Tinker, May 2015

300 words

1 page

essay

Numerous companies suffer acutely because of occupational frauds and abuses. Fraud’s detection and effective prevention could safe both corporate money and company’s reputation. Each year the losses caused by occupational frauds are becoming higher and higher. That’s why the decision of the Beta Inc. CEO to work out some measures regarding frauds prevention seems to be extremely reasonable.

There are different advices concerning antifraud measures. The next preventive program could be recommended to the CEO: hotline introduction (it is important that everyone knows about that system, as well as company’s clients and suppliers, and there is a guarantee of tips’ confidentiality); implementation of the ethics code (introduction of employee assistance programs as well as positive and caring atmosphere means a lot); fraud awareness trainings and education (the workers should know clearly what is fraud, how they can report fraud actions and how frauds influence the wellbeing of the company) (Clifton Gunderson LLP, 2010).

According to the researches of the Association of Certified Fraud Examiners those companies that introduce the antifraud control have reported the fraud costs reduction. It actually proves that the culture of honesty and openness could become a reality nowadays and it worth fighting. Such measures as: the formal management reviews, hotlines and support programs correlate strongly with fraud situations reducing (in twice). The CEO is relying upon the audit, but we would not recommend it. “External audits of financial statements - the most commonly implemented control among the victim organizations in our study -showed the least impact on the median loss suffered, with an associated reduction of less than 3%” (Global Fraud Study, 2012, p. 36).

References

Clifton Gunderson LLP (2010). Nine Steps to Arrest Internal Fraud. [Online] (Updated Sept. 12 2012) Available at: [Accessed Sept. 12 2012].

Albrecht, W. Steve & Albrecht, Chad O. (2003). Fraud Examination. Mason, OH: South-Western. Pages 86-96.

Global Fraud Study (2012). Report to the Nations on Occupational Fraud and Abuse. ACFE. [Online] (Updated Sept. 12 2012) Available at: [Accessed Sept. 12 2012].

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