assignment

Employee Fraud in Australia
    Employee Fraud in Australia    RELATED RISKS AND MITIGATION
    
    
Executive Summary
An attempt to defraud people is common with the Employee fraud, and have the potential to be one of the expensive liabilities for the companies or the organisations. However, it is not the case that the companies takes the anticipatory measure but they linger till the time they are victimised thereby opting for minimisation of it through comprehensive fraud controls as the essential measure towards the prevention of it. This report is prepared by me being the Employment Relations Officer of a medium size business, where I am requested by the owner George to look for an article which relates to the frauds by the employees within the Australian business. After providing the overview of the article, the actual as well as the potential weaknesses will be discussed within the internal control, which actually surface the employee fraud. Finally this report will provide the recommendations, so that George could deploy them towards minimisation of risks within the course of our business, along with the one-page extract of the procedures manual for implementation.
Table of Contents
Executive Summary    1
Introduction – An overview    3
Internal control weaknesses- Actual and Potential    4
Risk Mitigation- Controls    5
Procedures manual- Implemented within Internal Controls    7
Conclusion    8
References    9
Introduction – An overview
Basically Fraud is that kind of behaviour which is not only deceptive, but also dishonest and includes corrupt practice and mostly tending to be unethical. Thus, from legal perspective, a fraud comes in to existence, with the malpractices of an offender, to perform fraud on a victim only possible due to the fact that the controlling and safeguards procedures are not present, or even they are present they are not implemented. An employee fraud broadly can be classified under three heads which comprises of the asset misappropriation, followed by the tactics deployed within the fraudulent accounting and that of the financial reporting and nevertheless the corruption. So, the motivational factors working behind the fraudulent activity is based on pressures, or opportunity and also rationalism (Dellaportas, 2013). The article presented by (Warfield, 2012) in Million Dollar Employee Fraud in Australia, highlights the fraud which perpetrated by employees. As the researched aimed in increasing the impact of the employee fraud on the organisation, it also helped in providing the required guidance which the organisations can opt for towards reduction of the incidence concerning employee fraud. The perspective of the article was based on the criminal offences performed by the employee which includes Embezzlement or false accounting, to that of the falsification of accounts, including forgery by any kind of fraudulent misappropriation or through false documentation or by way of false instrument and making deliberate false entries, or acquiring properties by way of deception and also receiving or providing advantage financially, to name a few amongst many.
Internal control weaknesses- Actual and Potential
Often the challenge towards the detection, then investigate and then mitigate the employee fraud becomes burdensome since, frauds are multifarious and each of them requires entirely different ways of detection. So, when the business becomes the victim of the fraud then impacts of it vary widely, is recently observed in (From freebies for mates to $150,000 fraud, employee theft costs Australian business billions, 2018). The morale amongst the staffs becomes affected since there is possible feelings of betrayal from the colleagues or that from the management in allowing that to happen. Losing better employees is also another concern affected by fraud, since if the whole business becomes affected then there is possible chance that other employees get a distaste and opt for some other companies (Employee fraud in Australia: Meet the bank employees who stole $217 million over 13 years, 2013). Most importantly, the goodwill of the business becomes affected and affects greatly from customers to that of the suppliers and also the potential...