Tags |
|
|
Casual Articles - What is Company Fraud and How Do You Stop It? (Part 2 of 2)
Engineering is considered as an inventive, innovative and prestigious profession. A project can never be accomplished without the contribution of an engineer. An engineer designs and plans a project on the basis of its technical specifications. Engineering jobs have bright future and are categorized into various disciplines like civil, electrical, mechanical, electronics, computer science, textile, information technology and many more. Engineering staffing is much more in comparison to other civil and administration jobs because the demand of engineers and engineering jobs has tremendously increased. In this world of modernization, doctors, architects and many other professionals depend directly or indirectly on engineering services.All engineering jobs are prioritized as technical jobs and generated in all technical companies. The day to day engineering and re-engineering technology creates number of engineering jobs in IT industry. Engineers are naturally talented with studying different branches of engineering and domain they work on. They
Other Corporate Expense Management Controls
Some other corporate expense management controls that are helpful in combating fraud include:
- Requiring business purchases be made on a corporate credit cards
- Monitoring transactions on the corporate credit cards
- Direct pay of corporate credit cards
- Pre-population of corporate credit card data in expense report preparation
- A good system of approvals to prevent unauthorized reimbursements
- A thorough review of an individual's expenses over a period of time
- Implementation of a PostProcurement environment (historically we have been working in a pre-procurement environment (Purchase Requisition, Order, Receipt, Remittance, 3 Way Matching, Journal, etc.) which can lead to at least 20% of transactions being disputed.)
Corporate Expense Management Software
Corporate expense management software automates the management of expense claims, significantly reducing the risk of error or fraud and comprehensively managing all purchasing data. A good corporate expense management software s
Perhaps you’ve found yourself in the position of seeking a new position due to a layoff, cutback or downsizing and are now facing the interviewing process. As scary as that may seem, one of the most critical points to remember is that just because you’re sitting in the seat opposite the potential employer doesn't mean you have no control. There are a number of ways for making the interview a more equal experience and the first starts with knowing you have the right to ask questions.Come Prepared!Although it’s not a good idea to monopolize the interview, asking questions shows your interest in the position therefore it’s a good idea to prepare a few questions beforehand. By doing some research about the company you show the interviewer that you’re really a knowledgeable and serious applicant.What You Shouldn’t Say During and Interview!If you've not had a chance to ask your own specific questions during the interview simply wait until near the end of the meeting and suggest that you have a few questions. But use caution b
There are two main steps required to stop fraud in your company: Step 1 - identify your fraud risks; Step 2 - implement corporate expense management software controls to minimize those risks.
STEP 1 - Identify Your Fraud Risks
Is your company vulnerable to any of the following?
- Variances between hardcopies and computerized reports;
- Departure and return airfare on different dates but with no corresponding hotel expenses;
- Meals on weekends or in non-work locations;
- Poor descriptions and incomplete documentation such as a missing boarding pass, itinerary or receipt;
- Dates out of sequence;
- Old receipts;
- Nasty or inconsistent explanations to questions regarding claims. A common response is "how dare you question me?" ;
- Copies;
- Altered receipts;
- Credit card statements or printouts instead of receipts;
- Airline tickets:
- Employees have been known to pay for airline tickets using frequent flyer points and then claim the cost of a ticket as an expense from the company. This can be considered a fraudulent activity;
- There are numerous mechanisms employed to defraud an organization through the use of airline tickets. Organizations need to be diligent when dealing with airline ticket exchanges, refunds, partial refunds and possibility the flight being claimed was not taken (evidence of car rental, parking at the home airport, meals or other expenses in the destination are not present).
- Duplications to watch out for:
- These may not be identical amounts as in the case of partial hotel bills;
- Past due charges on mobile phone bills;
- The same expense may be reported twice in one period or in two or more periods with a different description and coding.
- Claiming personal items can also be a source of fraud against the company. These can include:
- Travel for family members;
- Retail or personal purchases;
- Excursions added on to business trips;
- Extra days in a hotel, car rental etc.;
- Gift shop, massages, etc. may be included on a hotel bill;
- Non-authorized trips.
- Organizations should also be diligent in identifying expenses being claimed that were not incurred. This is especially relevant when related to the claiming of meal expenses and meal per diem expenses;
- Inconsistencies such as taxi and rental car claims for the same portion of trip or mileage calculations that are clearly inflated;
- Overstatements may or may not be deliberate, however they include typographical errors ($34.95 reported as $3,495) and incorrect exchange rate conversions.
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense Management Software Controls
In order to minimize the risk of fraud in your company, your corporate expense management software controls should be designed to provide and support the 5 W's (Who, What, Where, When, and Why). They must ensure that all reasonable, authorized expenses incurred in order for a staff member to perform their job responsibilities are paid with the corporate credit card and documented with an original, valid, unaltered receipt, and they must be implemented throughout the entire organization, at all levels and in all functions.
In practice, these corporate expense management software processes, controls, and procedures are very broad. They relate to items such as approvals, authorizations, verifications, reconciliations, segregation of duties, reviews of operating performance, background investigations, and physical security. They need to be embedded in your day-to-day management and monitoring processes, and they need to also leverage available information technology.
Segregation of Duties as a Corporate Expense Management Control
Given the nature of accounts payable and the related functions, segregation of duties is a crucial consideration. Following is a partial list of duties related to accounts payable and how they should be segregated.
- The person responsible for bank reconciliation should not:
- Handle unclaimed property reporting
- Be a signature on a bank account
- The person who is check signature should not:
- Authorize invoices for payment on an account that he/she is also a signature
- Have ready access to the check stock.
- A person who is responsible for the check stock should not:
- Be an authorized signature
- Handle the bank reconciliations
- The person responsible for the master vendor file should not:
- Be an authorized signature
- Be able to approve invoices for payment
- Handle unclaimed property
- Individuals responsible for accounts payable functions should not also be responsible for accounts receivable.
Other Corporate Expense Management Controls
Some other corporate expense management controls that are helpful in combating fraud include:
- Requiring business purchases be made on a corporate credit cards
- Monitoring transactions on the corporate credit cards
- Direct pay of corporate credit cards
- Pre-population of corporate credit card data in expense report preparation
- A good system of approvals to prevent unauthorized reimbursements
- A thorough review of an individual's expenses over a period of time
- Implementation of a PostProcurement environment (historically we have been working in a pre-procurement environment (Purchase Requisition, Order, Receipt, Remittance, 3 Way Matching, Journal, etc.) which can lead to at least 20% of transactions being disputed.)
Corporate Expense Management Software
Corporate expense management software automates the management of expense claims, significantly reducing the risk of error or fraud and comprehensively managing all purchasing data. A good corporate expense management software so
It can be so frustrating to hear “you don’t have enough experience for the job” when you’re only 17. Sometimes employers seem to want it all their way; they want to pay minimum wage to the youngest candidate possible but they want that candidate to be experienced. It’s a vicious cycle and represents very unrealistic expectations on the part of employers. You can, however, give yourself an edge over other applicants for jobs you’d like to apply for. Even while you’re still at school, you can do things that will help you to be more experienced than others, and give you that vital advantage.Volunteering Whether you peel vegetables at a soup kitchen, show visitors around a hospital, read stories to ill children or give up your time to wash cars for charity, volunteering gives you a skills base to boast about. Even if the skills you acquire have nothing to do with the job you want, your reliability, punctuality, dedication and initiative will be on record for prospective employers to see.Work experience Make up a resume, even if it me
- These may not be identical amounts as in the case of partial hotel bills;
- Past due charges on mobile phone bills;
- The same expense may be reported twice in one period or in two or more periods with a different description and coding.
- Travel for family members;
- Retail or personal purchases;
- Excursions added on to business trips;
- Extra days in a hotel, car rental etc.;
- Gift shop, massages, etc. may be included on a hotel bill;
- Non-authorized trips.
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense Management Software Controls
In order to minimize the risk of fraud in your company, your corporate expense management software controls should be designed to provide and support the 5 W's (Who, What, Where, When, and Why). They must ensure that all reasonable, authorized expenses incurred in order for a staff member to perform their job responsibilities are paid with the corporate credit card and documented with an original, valid, unaltered receipt, and they must be implemented throughout the entire organization, at all levels and in all functions.
In practice, these corporate expense management software processes, controls, and procedures are very broad. They relate to items such as approvals, authorizations, verifications, reconciliations, segregation of duties, reviews of operating performance, background investigations, and physical security. They need to be embedded in your day-to-day management and monitoring processes, and they need to also leverage available information technology.
Segregation of Duties as a Corporate Expense Management Control
Given the nature of accounts payable and the related functions, segregation of duties is a crucial consideration. Following is a partial list of duties related to accounts payable and how they should be segregated.
- The person responsible for bank reconciliation should not:
- Handle unclaimed property reporting
- Be a signature on a bank account
- The person who is check signature should not:
- Authorize invoices for payment on an account that he/she is also a signature
- Have ready access to the check stock.
- A person who is responsible for the check stock should not:
- Be an authorized signature
- Handle the bank reconciliations
- The person responsible for the master vendor file should not:
- Be an authorized signature
- Be able to approve invoices for payment
- Handle unclaimed property
- Individuals responsible for accounts payable functions should not also be responsible for accounts receivable.
Other Corporate Expense Management Controls
Some other corporate expense management controls that are helpful in combating fraud include:
- Requiring business purchases be made on a corporate credit cards
- Monitoring transactions on the corporate credit cards
- Direct pay of corporate credit cards
- Pre-population of corporate credit card data in expense report preparation
- A good system of approvals to prevent unauthorized reimbursements
- A thorough review of an individual's expenses over a period of time
- Implementation of a PostProcurement environment (historically we have been working in a pre-procurement environment (Purchase Requisition, Order, Receipt, Remittance, 3 Way Matching, Journal, etc.) which can lead to at least 20% of transactions being disputed.)
Corporate Expense Management Software
Corporate expense management software automates the management of expense claims, significantly reducing the risk of error or fraud and comprehensively managing all purchasing data. A good corporate expense management software s
One of the biggest costs for most employers in today’s market place is recruitment of quality staff. In order to reduce this cost every organisation should have in place ‘staff retention action plans’. To achieve this detailed trend analysis will be required specifically looking at:• The time line – at what point in a career do people want to move on• What is the leavers profile – age range – position – lifestyle - ambitions• Exit interviews – detailed questioning of the employees reasons for leaving (not by a line manager)• Is there a particular time of year when attrition levels are high• What is the skills base of the leaver and how did this match their role• identify a profile of employees who stay for more than two yearsFrom this analysis organisations can:• Introduce career planning and coaching before a valued employee thinks of moving on• Review values and culture of organisation to improve environment• Crank up recruitment plans when required in preparation for any seasona
There are numerous other less obvious activities that fail to comply with legislative and/or company policies. Examples of these failures include improper coding, such as: hotel bills that include meals, phone, etc., that are reported as lodging; car rental which may not fall into a company authorized class; and the use of prohibited vendors.
STEP 2 - Implement Corporate Expense Management Software Controls
In order to minimize the risk of fraud in your company, your corporate expense management software controls should be designed to provide and support the 5 W's (Who, What, Where, When, and Why). They must ensure that all reasonable, authorized expenses incurred in order for a staff member to perform their job responsibilities are paid with the corporate credit card and documented with an original, valid, unaltered receipt, and they must be implemented throughout the entire organization, at all levels and in all functions.
In practice, these corporate expense management software processes, controls, and procedures are very broad. They relate to items such as approvals, authorizations, verifications, reconciliations, segregation of duties, reviews of operating performance, background investigations, and physical security. They need to be embedded in your day-to-day management and monitoring processes, and they need to also leverage available information technology.
Segregation of Duties as a Corporate Expense Management Control
Given the nature of accounts payable and the related functions, segregation of duties is a crucial consideration. Following is a partial list of duties related to accounts payable and how they should be segregated.
- The person responsible for bank reconciliation should not:
- Handle unclaimed property reporting
- Be a signature on a bank account
- The person who is check signature should not:
- Authorize invoices for payment on an account that he/she is also a signature
- Have ready access to the check stock.
- A person who is responsible for the check stock should not:
- Be an authorized signature
- Handle the bank reconciliations
- The person responsible for the master vendor file should not:
- Be an authorized signature
- Be able to approve invoices for payment
- Handle unclaimed property
- Individuals responsible for accounts payable functions should not also be responsible for accounts receivable.
Other Corporate Expense Management Controls
Some other corporate expense management controls that are helpful in combating fraud include:
- Requiring business purchases be made on a corporate credit cards
- Monitoring transactions on the corporate credit cards
- Direct pay of corporate credit cards
- Pre-population of corporate credit card data in expense report preparation
- A good system of approvals to prevent unauthorized reimbursements
- A thorough review of an individual's expenses over a period of time
- Implementation of a PostProcurement environment (historically we have been working in a pre-procurement environment (Purchase Requisition, Order, Receipt, Remittance, 3 Way Matching, Journal, etc.) which can lead to at least 20% of transactions being disputed.)
Corporate Expense Management Software
Corporate expense management software automates the management of expense claims, significantly reducing the risk of error or fraud and comprehensively managing all purchasing data. A good corporate expense management software s
I had traveled last week and wanted to share one of my experiences with you. I had completed a series of seminars on Business Writing and finished in Oakland, Ca. That happens to be near where my brother lives and I took the opportunity to visit him over the weekend.We went to dinner on Saturday evening at a restaurant that was right down the street from his house. Here is where the story becomes about Customer Service. Since it was very near his house, my brother is a regular. You can always tell you are a regular if the owner greets you by name and gives you a hug.We signed on the waiting list, (it was very busy) and proceeded to ogle the other patrons dishes. I do believe this is the purest form of torture, being able to see, smell and anticipate the enjoyment of a good meal, and not being able to join in the fun and taste, even though it is a mere 3 feet away.After we had waited a few minutes the owner came back by and asked if we would like a glass of wine. Excellent suggestion! Of course we had a little vino to while away
Segregation of Duties as a Corporate Expense Management Control
Given the nature of accounts payable and the related functions, segregation of duties is a crucial consideration. Following is a partial list of duties related to accounts payable and how they should be segregated.
- The person responsible for bank reconciliation should not:
- Handle unclaimed property reporting
- Be a signature on a bank account
- The person who is check signature should not:
- Authorize invoices for payment on an account that he/she is also a signature
- Have ready access to the check stock.
- A person who is responsible for the check stock should not:
- Be an authorized signature
- Handle the bank reconciliations
- The person responsible for the master vendor file should not:
- Be an authorized signature
- Be able to approve invoices for payment
- Handle unclaimed property
- Individuals responsible for accounts payable functions should not also be responsible for accounts receivable.
Other Corporate Expense Management Controls
Some other corporate expense management controls that are helpful in combating fraud include:
- Requiring business purchases be made on a corporate credit cards
- Monitoring transactions on the corporate credit cards
- Direct pay of corporate credit cards
- Pre-population of corporate credit card data in expense report preparation
- A good system of approvals to prevent unauthorized reimbursements
- A thorough review of an individual's expenses over a period of time
- Implementation of a PostProcurement environment (historically we have been working in a pre-procurement environment (Purchase Requisition, Order, Receipt, Remittance, 3 Way Matching, Journal, etc.) which can lead to at least 20% of transactions being disputed.)
Corporate Expense Management Software
Corporate expense management software automates the management of expense claims, significantly reducing the risk of error or fraud and comprehensively managing all purchasing data. A good corporate expense management software s
A discussion recently about conducting successful workshops led me to believe that very few people have the answers. It is ironic that the very people who are supposed to have all the answers, people conducting workshops, don’t really know how to capture and captivate an audience. It’s a shame that most people are being attracted to the more alluring and energetic voice, one that may not necessarily have the correct answer.We’ve seen them on television and businesses hire them as motivational speakers, because that’s really all they do. They transfer their high energy to you and make you want to jump out of your seat and go get something done. But what it is that you want to do, you don’t even know yet. You don’t have the answer to that one. You’re just a ball of energy ready to explode and make things happen, but you don’t have a cause.We’ve seen the other too. We’ve seen the guy who knows what you need to do and how to do it. He’s the hired training officer for your company who reads through all of the directives and puts them
Other Corporate Expense Management Controls
Some other corporate expense management controls that are helpful in combating fraud include:
- Requiring business purchases be made on a corporate credit cards
- Monitoring transactions on the corporate credit cards
- Direct pay of corporate credit cards
- Pre-population of corporate credit card data in expense report preparation
- A good system of approvals to prevent unauthorized reimbursements
- A thorough review of an individual's expenses over a period of time
- Implementation of a PostProcurement environment (historically we have been working in a pre-procurement environment (Purchase Requisition, Order, Receipt, Remittance, 3 Way Matching, Journal, etc.) which can lead to at least 20% of transactions being disputed.)
Corporate Expense Management Software
Corporate expense management software automates the management of expense claims, significantly reducing the risk of error or fraud and comprehensively managing all purchasing data. A good corporate expense management software solution can reduce processing costs by as much as 90%, so the payback period is tangible and measurable (often less than 6 months).
When choosing a corporate expense management software solution, ensure that it can manage digital data from a range of B2B transactions including purchasing cards, travel expense cards, fleet cards, mobile phones, and Internet purchasing. Information can then be integrated into operating systems including human resources, accounts payable, general ledger, and ERP. Furthermore, make sure that it accommodates all major credit card transactions, that it is non-bank specific, and that it can operate with the world's leading ERP systems.
And finally, before choosing your corporate expense management software solution, consider the fact that technology is not the entire story in achieving corporate expense management outcomes. Cultural issues, resistance to change and corporate ownership are the greatest barriers to the growth of card programs and the realization of benefits. You must be confident that your corporate expense management software solution provider has a customer-focused consultancy based approach to client relationships of which technology is only one very important part.
Conclusion
Fraud is a significant cost to many (if not most) companies. But it doesn't have to be. By identifying your fraud risks and implementing appropriate corporate expense management controls and corporate expense management software, you can very effectively minimize your fraud risks. And with the right corporate expense management software solution, ROI within 6 months is very achievable.
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/23230/casualarticles-What-is-Company-Fraud-and-How-Do-You-Stop-It-Part-2-of-2.html">What is Company Fraud and How Do You Stop It? (Part 2 of 2)</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/23230/casualarticles-What-is-Company-Fraud-and-How-Do-You-Stop-It-Part-2-of-2.html]What is Company Fraud and How Do You Stop It? (Part 2 of 2)[/url]
Related Articles:
Dangerous Careers May Call for More Life Insurance
Bookmark it:
|