Monday, December 26, 2016

How to prevent this type of fraud

Two staffs working for a cooperative society were charged for fraudulently creating false loan applications and taking off $5 million over a period of five years. Their activities were not detected by the management or the external auditors.

This type of fraud could be prevented by carrying out an annual database audit. The management and external auditors should adopt this method of fraud prevention. This will avoid the loss of reputation and trust by the members and customers.

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