OK - so we have discussed the case situation where an administrative assistant was using her position to defraud the company. She was taking money from a variety of sources, using the "salami" technique to avoid getting caught. So, what strategies can be employed to ensure, or at least reduce the risk, that this will occur?
The most important step that an organization can take is to segregate duties. Because the administrative assistant was given so much power which "bottlenecked" at her source, she was able to take money from so many different sources without getting caught. By separating the recieving, issuing and collection of payments among other individuals, at least one of these frauds could have been avoided. If the organization is small and many people have to wear different "hats," then at least have an outside source have some kind of control over the situation, if only for short periods of time (i.e. an outside auditor or accountant).
The most important step that an organization can take is to segregate duties. Because the administrative assistant was given so much power which "bottlenecked" at her source, she was able to take money from so many different sources without getting caught. By separating the recieving, issuing and collection of payments among other individuals, at least one of these frauds could have been avoided. If the organization is small and many people have to wear different "hats," then at least have an outside source have some kind of control over the situation, if only for short periods of time (i.e. an outside auditor or accountant).
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR
IS IT INTENDED TO BE LEGAL ADVICE. IF
THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.
Have a great and fraud-free day.
----------à>>>>>>>>>>>>>>>gene
tausk
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