Law

Security in the general society which is perceived as organized is normally provided for by the armed forces, private security and also by the use of law enforcement. Security by definition, are the methods used to increase the methods of providing a crime controlled environment, by the use of security services and alarms. Due to the recent changes in technology and trends, there has now been added a new term which is loss prevention. This involves the prevention of loss of assets via fire, crisis, terrorism, etc. Thus loss in broad definition is the increasing the likelihood of controlling loss of property by an individual or a number of individuals.

Fraud is a general term that describes deceiving an individual intentionally, with an aim of damaging that individual or just for personal gain. Fraud being a crime by definition of law, it is also punishable by the same way. Most of the hoaxes are considered as fraud, but if it is not with an aim of personal gain, it is not technically a fraudulent activity. Fraud for monetary gains has always been the most common form of fraud, though fraudulent activities involving archeology has also been reported. Fraud is possible through a various number of forms, including via technological forms such as phone and mail. Most common form of fraud includes identity theft, embezzlement, bait and switch, benefit fraud where one frauds the government, charlatanism, confidence tricks, bankruptcy frauds which involve the theft of goods and services, investment frauds and many other forms that are countless.

The most common form of embezzlement is in the corporate world involving the misappropriation of funds that is entrusted to an individual, in a dishonest manner. It is mostly done in a manner that is systematic, and in small amounts, so that the authorities involved cannot detected, thus it is done over a long period of time. Thus in this paper, we will be looking at the safeguards against embezzlement, as well as the deterrent of other fraudulent activities, within the corporate world.

How would you protect corporate executives of fraudulent acts against them What would be your plan of action How would you implement your measures

One of the methods I would advise corporate executives to use to prevent fraud, is by use of internal controls. My plan of action with this method would be to ensure that there is a separation of duties allocated to different staff. A good example of implementation of this, especially in the case of embezzlement, which is also a form of fraud, is if a certain individual is supposed to be collection cash, and a receipt or voucher is to be received for entry or access into a certain service, the task should be divided into two separate individuals, such that one receives the cash, and one receives the receipt given for entry or access to a service. The only way that an individual with an intention of embezzling money in such a way could succeed is by colluding with the other party. This will not completely eliminate fraudulent activities within the organization, but it will ultimately reduced it, considering that such a collusion is difficult to arrange, and even if done, the final pay-off that each individual would receive will be split and hence not worth the trouble. Another way in which I would protect the corporate executives is to ensure that funds that are entrusted to an individual, is constantly in rotation, to a different individual entrusted the same funds after an unspecified period of time. This will deter such individuals from embezzling the funds over fear of detection.

Implementation of this principle can be done by ensuring that when the organizations require funds, the accountant is not notifies of the need for money before hand, but rather, they funds are just requested for impromptu. Some of the evaluation methods that I would use to evaluate the outcomes of the methods implemenetd would include, setting up of a control environment, assessing the risks involved, setting up control activities, setting up of an efficient information and communication setup and finally monitoring the progress made by the corporates in their involvement of implementation.

If you were requested by the chairman of the corporation to create a loss prevention education workshop for the corporate executives, how would you create it for implementation What would be the mechanisms that you would use to evaluate that the lessons being learned in the workshop are working toward loss prevention

If I was given the responsibility of creating a loss prevention workshop, I would ensure that I set it in a manner that it falls on a day that all the executives will be present, and also ensure that each and everyone attends the workshop. I would also arrange for certificates to be awarded to the participants to ensure that they are motivated to attend, and be participative and serious. I would educate the executives on the importance of fraud deterrence, as opposed to fraud prevention. With fraud deterrence, you choke out the opportunities for fraudulent activities, while with preventions, you simply try to avoid, but still it can occur. One of the methods I can use to evaluate the success of the program is to ensure that there is a test at the end of the workshop, and this is where the certificates of merit will be awarded. I will also place a scenario, unknowingly to the executives of course, that will evaluate their level of preparedness to fraud attempts.