Imagine that you work in the accounts and finance department for your company and one of your directors is using company money for his personal expenses which claim as business expenses. Now answer these questions:
- What would you do?
- Should you report it to anyone?
- Who could you trust?
- Is this fraud?
- If you don't report it, are you complicit in fraud?
Everyday, many businesses are victimised by fraud around the world. Frauds
can be categorised by a number of different methods, but they are usually
referred to as either internal or external frauds. It also can take many shapes
and can impact an organisation in many ways – not just financially.
We should
know how and where a company may be vulnerable and take the proper steps and controls to
protect against vulnerabilities. Forensic accounting and fraud examination (FAFE) provide tools and techniques for
preventing, deterring, detecting, investigating and remediating bad acts
grounded in financial gain. It determines the who,
what, when, where and how of fraudulent acts.
Let's go through the Mind Map to have big picture of FAFE.
Click on the picture and zoom for better viewing:
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