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Non-executive directors
 
should 
act
on 
signs 
of 
dishonesty 
by senior executive management. The 
audit committee
should 
review the organisation's performance 
in fraud prevention and report 
any suspicious matters to the board.
4.20.1 Fraud officer 
Many large organisations have appointed a fraud officer, who is responsible for 
initiating 
and 
overseeing 
fraud investigations
, 
implementing the fraud response plan
, and for 
any follow-up actions
. The fraud 
officer should be able to 
talk to staff confidentially 
and be able to 
provide advice 
without consulting 
senior management.
4.21 Availability of information 
It is of course important that information should be available to enable management to identify signs of 
actual fraud, or of an environment where fraud may occur. 
(a) 
Cost and management accounting systems 
should 
provide 
promptly 
information 
with sufficient 
detail to enable management to identify parts of the business whose performance is out of line 
with expectations. Actual results should be compared with budgeted results and explanations 
sought for significant variances. 
(b) 
Personnel procedures
 
such as 
staff meetings
, 
appraisals 
and 
exit interviews 
may indicate low 
morale or staff who are under undue pressure. 
(c) 
Lines of reporting 
should be 
clear
. Staff should know to whom they should report any suspicions 
of fraud.
BPP Tutor Toolkit Copy

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CHAPTER 10
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IDENTIFYING AND PREVENTING FRAUD