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Development of an Anti-Fraud Program

A typical organization loses a certain percentage of annual revenue to fraud. The potential for fraud occurs in all organizations, regardless of the industry in which it operates, financial structure, or size. Every organization is vulnerable to fraud. The risk of fraud should be reduced as much as possible to improve the longevity of the organization. Hence, preventing, deterring, and detecting fraud are crucial to the success of organizations. Deterring and preventing fraud can be more economical than detecting, investigating, and recovering from fraud after the fact. These anti-fraud measures must start at the top and must be communicated throughout the organization. They must go beyond internal controls yet consider the cost-benefit.

Develop an anti-fraud program, or model, that can be implemented in any organization. In other words, don’t apply the model to a specific organization. The model, if applied correctly, must be efficient in preventing, detecting and deterring fraud. At minimum, your model must address the following factors:

Fraud risk assessment

Employees’ Code of Conduct

Policies and procedures to prevent, deter, and detect fraud

Technical tools to prevent, deter, and detect fraud (i.e. SQL, ODBC, Digital Analysis, etc.)

Cost-benefit analysis

Resources to consider:

AICPA. (n.d.). Managing the business risk of fraud: A practical guide (Links to an external site.). https://competency.aicpa.org/media_resources/20904…

Protiviti. (n.d.) Evaluating your anti-fraud program (Links to an external site.).  (Links to an external site.)https://www.protiviti.com/US-en/insights/suggestio…  (Links to an external site.)