How would a CFE devise a plan to prevent subsequent employee fraud?
Solution
ANSWER:
Although the prevention of fraud is always less costly and more effective than fraud detection
(and subsequent investigation), however unfortunately prevention is not always possible. This
the reason, as CFE’s Certified Fraud Examiners (CFE) we must all be heavy promoters (and
supporters) of client internal audit functions
The CFE devise a plan to internal audit that includes the procedures to identify or prevent
significant incomplete, inaccurate, or unauthorized transactions; unreliable financial reporting;
deficiencies in safeguarding assets; and deviations from regulations, laws, and institutional
policies. When effectively designed and implemented, internal audits gives directors and senior
managers with timely information in regard to weaknesses in the internal control system and thus
facilitating timely remedial action and prevent subsequent employee fraud. Each institution is
required to have an internal audit function appropriate to the size and the nature and scope of the
activities.
How would a CFE devise a plan to prevent subsequent employee fraud.pdf
1. How would a CFE devise a plan to prevent subsequent employee fraud?
Solution
ANSWER:
Although the prevention of fraud is always less costly and more effective than fraud detection
(and subsequent investigation), however unfortunately prevention is not always possible. This
the reason, as CFE’s Certified Fraud Examiners (CFE) we must all be heavy promoters (and
supporters) of client internal audit functions
The CFE devise a plan to internal audit that includes the procedures to identify or prevent
significant incomplete, inaccurate, or unauthorized transactions; unreliable financial reporting;
deficiencies in safeguarding assets; and deviations from regulations, laws, and institutional
policies. When effectively designed and implemented, internal audits gives directors and senior
managers with timely information in regard to weaknesses in the internal control system and thus
facilitating timely remedial action and prevent subsequent employee fraud. Each institution is
required to have an internal audit function appropriate to the size and the nature and scope of the
activities
