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10+ Fraud Policy Templates in PDF | DOC
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A written statement of policy on fraud suggests that the battle against fraud is embraced and sponsored at the highest level within your company. Organizations may want to ensure that all workers are mindful of a zero tolerance approach towards criminal infringements of corporate practices that can be reported police. Any workers, vendors and suppliers should be told of the fraud policy statement.
Policy Template Bundle
10+ Fraud Policy Templates in PDF | DOC
1. Fraud Prevention Policy Template
ntpc.co.in2. Fraud Framework Control Policy Template
isaca.org3. Sample Fraud Policy Template
acfe.com4. Anti-Fraud Policy Template
coalindia.in5. Fraud Policy Template
ed.ac6. Fraud Policy Template in PDF
indiafirstlife.com7. Fraud Control Policy Statement Template
tdic.ae8. Fraud Policy Example
hrw.org9. Anti-Fraud Policy Template in PDF
oxfordshire.gov10. Fraud Policy Strategy Template
bradford.gov11. Fraud Risk Management Policy Template
communitydirectors.comPrinciples of Fraud Prevention
Every company is susceptible to fraud, with only the particular risks associated varying across organizations. Therefore, fraud risk assessment is an important first step in the development of an active prevention programme. The basic process of building a plan involves assigning responsibility to a supervisor or managers, who will then include if appropriate more people in the company to guarantee that all elements of the organization’s operations are tested for fraud risks. Keep in mind that real fraud might still happen, so that a constant tracking and evaluation component is required for the broad process to track effectiveness.
Once a plan for fraud prevention has been in place, communicating it to everybody in the company, from top to bottom, is crucial. This may require preparation or research; however, it will better inform everyone on the firm’s concept of fraud and standards on how it should be handled by employees. Because fraud is a secret risk the corporate risk assessment strategy should include both identification and preventive efforts. Where strong preventive measures are in place, however, managers can get both a boost in identification and prevention. Training on the fraud risk prevention program, for example, may not only discourage any fraud but may also enable honest workers to disclose what they know about fraud.
Fraud Prevention Controls
Fraud prevention controls generally differ from company to company depending on the company protocols and requirements. However, some practices can be used irrespective of the organization it is being used for:
Background screening:
Among the most efficient ways of avoiding fraud is the practice of excluding those who are at higher risk for fraud. Organizations will screen potential workers, employees considered for important new positions, and as far as possible outsourced suppliers or partners.
Anti-fraud training:
Training is critical as has already been said. This helps make the organization’s policies clear to set expectations and establish awareness of enforcement actions. No employee should be excluded from this training at any level.
Performance evaluation:
A popular finding in organizational fraud research is that fraud is committed by generally trustworthy people. Often because of their treatment, they rationalize their behavior, e.g. by being passed on for a promotion or a boost. The incentive-based payment systems sometimes lure individuals to pad or cut corners. Evaluations of performance must be correct, equitable and conveyed.
Exit interviews:
Staff individuals who leave may have information that can help in both prevention and identification for whatever cause.
Segregation of duties:
It’s a well-known concept fundamental for the prevention of fraud. It involves dividing the tasks and responsibilities among the employees so that no single individual has access to too much information.
Authority and access:
Preventive measures are specific checks conducted on the individuals who are authorized to approve an action, as well as policies on access to data.
Transaction controls:
Internal management breaches are a common cause of fraud. Policies will encourage constant monitoring of enterprise-wide transactions to detect illegal or suspicious activities immediately.
Auditing:
All external and internal investigations can help to control fraud. Since Sarbanes-Oxley points strongly to the upgrading of professional standards making fraud prevention an important part of audits.
Features of a Fraud Policy
The following items may be used to create the fraud policy of your organization:
- A strong statement prohibiting illegal activity, including fraud for the organization’s benefit.
- A description of the responsibility for performing inquiries, usually internal audit or defense.
- Any staff member who suspects misconduct is required to inform their superiors or those accountable for the investigations immediately.
- A description of the correct channels of communication for reporting fraud.
- A statement that will be thoroughly examined for alleged wrongdoing.
- A policy that will handle criminals fairly, regardless of the position held or length of service.
- A suggestion that the administration is accountable for identifying alleged corruption and recognizing the dangers of fraud in their fields.
- An assertion requiring administrators to fully cooperate with law enforcement and regulatory authorities, including reporting to law enforcement and prosecution support.
- A statement prohibiting wrap-up and testify retaliation.
- A provision to report all investigative activity to the audit committee.
- A statement of duty to alert the bonding firm and to file bonding claims.
How to Reinforce a Fraud Policy?
One more principle to remember is reinforcing the program after it has been signed by the employees. By stressing clear and decisive action against criminals, the company will demonstrate the value of the policy and the company’s zero-tolerance for fraud. A few common and standard actions are taken against fraud by organizations:
- Seek prosecution for criminal activity.
- Have a criminal fraud suit launched.
- Provide a clean dismissal of the offender’s employment, sometimes with agreed compensation.
- Don’t do anything.
Not doing something is entirely unacceptable, as it illustrates, among other items, an emptiness in corporate ethics, theoretically undermines bond coverage, and paves a way for other workers to impunity perpetrate wrongdoings. However, then there is the question as to whether the case should be terminated and finished or pursued with legal action. Auditors and investigators almost always want legal action to go forward. Nevertheless, they also hit the administrative challenge or Legal foregoing prosecution of a lawsuit because they assume litigation would be too costly in comparison to any profit the business would derive from the litigation. That’s both short-sided and wrong.
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