Attorney At Law Magazine Vol 5 Issue 10 - Page 27

One preventative step to avert any type of potential employee fraud is to perform an at-risk assessment of the company’s assets that may be at risk from employee dishonesty – everything from equipment, to inventory, to credit cards and cash on hand. An at-risk assessment starts with the identification of the assets that could be stolen or misused and continues with a review of controls to determine whether adequate protections are in place. The at-risk assessment can be performed by an experienced CPA, who may or may not be a forensic accountant. An internal audit department may also be tasked with performing these types of assessments. Whoever performs the assessment should seek out company representatives who understand the stated company controls, and who can navigate the cultural nuances within the company to determine what is actually being done. It is not unusual to find that the stated policies and procedures have morphed over time so that what is actually being done is nothing like what was originally intended. Companies should also let their employees know that they will prosecute employee fraud. One of the most significant deterrents of employee fraud is the certainty that employees will be prosecuted if they commit fraud against the company. The company must have internal control systems and monitor them to make sure they are effective. This means considering both aptitude and attitude. For internal controls to be effective, the people responsible for overseeing internal controls must know what the proper procedures are, have the aptitude to follow up on details, and the attitude that internal controls are important and must be followed.  Without these factors, the best internal controls can be totally ineffective. Taking steps to protect the assets of the company during this unusually stressful period also protects the people in the organization. Since people are the most important asset of a company, it is very sad to find that a trusted employee has given into temptation under stress. If the temptation is removed by confirming internal controls are effective, an otherwise honest and productive employee may be protected. ALL ‘Your Obvious Choice for Your Transcription Needs’ › General Transcription: Interviews Skype Meetings Webinars Speeches YouTube Court Hearings, Trials, Any Kind of Interviews, Phone Messages & 911 calls 12th St & Missouri | 602.212.1445 | mbatranscriptaz@cox.net Vol. 5 No. 10 Attorney at Law Magazine® Greater Phoenix | 27