In some cases, the management of the company is at fault when it comes to fraud cases. As much as management takes decisive action to prevent fraud, it is they who drive their subordinates to commit these acts. They do this inadvertently by failing to consider that the people they lead are also human. In this article I will dwell on how to run the accounting department because this is where fraud instigates.
One area management should avoid is putting pressure on accounting staff to complete their work in unusually short periods of time in the name of fraud control. Pressuring accounting staff to take short time to perform their duties will simply lead to tampering with data entries, and scammers allude to errors due to hasty calculations and registrations.
Since fraud is usually discovered long after the fraudster has killed and been replaced. Current accountants could also take the opportunity to commit fraud and blame the previous ones. Therefore, the business management team must ensure accountability of all accounting staff by avoiding high turnover of key accounting staff.
At any time, the accounting staff should not be short-staffed, this helps to avoid collusion. Few accountants can easily conspire and agree in unison to secretly defraud the company. They may also plot to commit fraud due to work pressure as their number is small.
The accounting office plays an important role in ensuring good financial management. Therefore, accounting staff should be given good salary packages and incentives to motivate them. This will go a long way towards meeting your financial needs and therefore preventing fraud.