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Star Infranet

~ Guidelines to Detect Fraud in Your Business

Star Infranet


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Swindling in businesses is one of the major issues the world is facing currently. As the name itself suggests, fraud refers to the deliberate attempt of misinterpretation by people related to the organisation in one way or the other, in both monetary as well as non-monetary gains. Even though the owners take all the relevant measures to check the fraud, the frauds take place. The prime reason for this is that every control system needs proper and constant monitoring, and business people being busy individuals could not devote the time required for the same.


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For the success of an enterprise, it is essential to detect these scams and keep a check on them. Businessmen have all the skills to keep these frauds in control, but due to the busyness it is advised to take assistance from qualified professionals to deal with this hazard. Though there cannot be a single strategy which can apply to all businesses, yet we have streamlined few to help in detecting and preventing fraud in your business.


Assessment of the internal measures : All the internal controls should be regularly assessed as they are most prone to frauds. A qualified professional should be appointed to keep a check on the controls. Accounts sections require constant monitoring as they attract fraudulent the most. Check on business assets : One of the major qualities of a good businessman is keeping a control on the assets and liabilities of the enterprise. It becomes mandatory to keep an inventory of all the business assets in order to protect the business from misdeeds like theft, pilferage, etc. Timely evaluation of stock and physical verification of the assets will dissuade employees from theft.


Maintaining code of conduct : Employers should keep a tab on the employees time to time; take notes of their behaviour especially of those related to financial transaction. Tab on unlawful actions : Every brick contributes in the construction of a building, similarly each and every act of an organisation matters, even a single illicit act hampers the reputation and goodwill in the market. Hence, it is a very crucial point for the owners to make sure that no such activities are occurring within the organization. Auditors’ Advices : Both legal and internal auditors are third party people and have no particular interest in your enterprise. Therefore, any finding by them should be taken very seriously as these professionals have niche knowledge of their subject and can add substantial value to your business.


Recommendations of audit committee : The audit committee is one of the key factors which delineate major issues of your business. Any recommendations or reviews made by this committee should be taken very seriously by the management. Maintain an anonymous complaint cell :  Many times employees want to bring a fraud into the notice of the employer but are afraid of their identity getting revealed, which may create enmity against him/her. So, it is essential for the owner to implement a complaint system where employees can report issues on the condition of anonymity. A complain box or hotline can serve the purpose.


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Star Infranet ~ Guidelines to Detect Fraud in Your Business


Star infranet ~ guidelines to detect fraud in your business