Fraud awareness

1. www.iita.orgA member of CGIAR consortium
IITA YOUTH CORPS
OCCUPATIONAL FRAUD AWARENESS
Rasheed Dauda
Senior Audit Officer
IITA Internal Audit Unit

2. www.iita.orgA member of CGIAR consortium
Fraud Triangle
Fraud
Triangle
Opportunity
Motivation
Rationalisation
• Cressey’s Fraud Triangle
• Explains the human
process for committing
fraud

3. www.iita.orgA member of CGIAR consortium
Fraud Triangle (cont’d)
Motivation
– Compulsive behaviours
• Gambling, alcohol, drug abuse
– Financial debts
• Credit cards, loans
Rationalisation
• Justification for fraud:
– “They owe me” or “I earned it”
– “I need it more than they do”
– “I am only borrowing it”
• A form of denial. The person is not
accepting reality.
• The hardest area (for management)
to influence or control.
Opportunity
• Perception by someone that he can
commit a fraud without getting caught.
• Mgt controls and influences
“opportunity” more than any other
factor in the Triangle.
• Mgt tools are employment checks,
internal controls, internal audits.
– Family problems
• Divorce, problems with children
– Work pressures/greed
• High targets

4. www.iita.orgA member of CGIAR consortium
International Survey
KPMG Survey (2013)
•The level of Fraud and Corruption has always been high on the African agenda.
•An increasing number of African countries have established Anti-Graft
commissions.
•The task of these commissions is to prevent, to detect, investigate and prosecute
graft related cases
YET
• In the period 1 July 2012 to 31 December 2012, 348 cases of fraud
were reported in the media (previous period: 193)
• The value of the reported cases for the period 1 July 2012 to 31
December 2012 is over $5.5 billion (previous period: $2.4 billion)
Source: 3rd
KPMG Africa Fraud Barometer (2013)

5. www.iita.orgA member of CGIAR consortium
Fraud Management Strategies
 Tone at the Top (TAT) – Zero tolerance for fraud/attempted fraud.
 Transparency in the conduct of the Centre’s activities
 Due diligence in the recruitment process
 Punishing established wrongdoing
 Internal controls/Internal audit
 Whistleblowing Policy – Gives opportunity to staff to report
(suspected) wrongdoing.

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Questions

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Questions