Fraud – A Licence to Print Money?

Martz Witty

Head of the Martz Group.
www.martz.co.nz

There’s been quite a bit of reporting lately that the Police are unable to investigate all the fraud cases being referred to them.

Often this is down to inadequate resources and the huge number of thefts from employees.

There is an easier way. Instead of worrying about prosecuting a fraudulent employee, why not put in place some procedures, protocols and protection to minimise, or even eradicate the possibility of being stolen from in the first place?

The statistics for in-house employee theft is nothing short of staggering and it costs employers some very serious money.

Sadly, most sit on the sidlines thinking; “Oh it will never happen to me, Nigel and Cathy are honest employees”.

Sometimes they are correct and often they are not.

To implement a best practice workplace is not only common sense, but good value as well.

It creates a level playing field that can minimise risk to your business and should help owners sleep better at night.

Having great internal controls can also provide a workplace where employees are above suspicion.

This can create a more harmonious work environment and bring better comradery and cohesion with team members.

If you’re not sure what procedures, policies and protocols are needed, then you can always get in a consultant to discuss and help design some agreed upon procedures, document them and then test that they actually work.

It’s like a mini audit, but is geared towards adding real value and enhancing systems.

There are obvious areas to check such as cash handling, payroll, banking, invoicing, duplicating creditors, to name but a few – but often overlooked areas, like ordering and stock control, are ripe for picking and theft.

Many of these risks can be reduced or removed entirely, but it takes a structured plan.

A quick potential warning sign is where you have an employee that never takes annual leave, or only takes a day here and a day there.

This is often as they need to be onsite to keep their theft under wraps.

Testing that the systems work is another important part and typically we recommend at least an annual test and check-up.

Agreed upon procedures and internal dry audits just make sense in our opinion.

Author: magazinestoday

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