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Changes in circumstances
 
may also increase the risk of fraud. Often a control system may 
become inadequate as a result of changes in the business, particularly changes in technology or 
the internal organisation.
(d) 
Certain areas, for example cash sales, are 
normally high risk
.
4.3 Reasons for poor controls 
Management also need to understand factors that may prevent controls from operating properly. 

Controls will not function well if there is a 
lack of emphasis 
on compliance or a 
lack of 
understanding 
of why the controls are required, how they should operate and who should be 
operating them.

Staff problems
 
such as understaffing and poor quality or poorly motivated staff can impede the 
operation of controls.

Changes in senior personnel 
can lead to a lack of supervision during the transition period. 

Emphasis on the autonomy of operational management
 
may lead to controls being bypassed. 
4.4 General prevention policies
Prevention policies include emphasis on 
ethics 
and 
personnel and training procedures
. Controls within 
particular business areas such as 
segregation of duties 
and 
documentation requirements 
are also 
significant. 
Management can implement certain general controls that are designed to prevent fraud. 
(a) 
Emphasising ethics
 
can decrease the chances of fraud. Several businesses have formal codes of 
ethics which employees are required to sign covering areas such as gifts from customers. 
Management can also ensure that they set 'a good example'. 
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