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PART C: ACCOUNTING AND REPORTING SYSTEMS, CONTROLS AND COMPLIANCE 
 
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(b) 
Personnel controls
 
are a very important means of preventing fraud. Thorough 
interviewing 
and 
recruitment procedures 
including obtaining references can be an effective screening for dishonest 
employees. 
Appraisal 
and grievance systems can prevent staff demotivation. 
(c) 
Training and raising awareness 
can be important. There are many examples of frauds taking 
place where people who were unwittingly close were shocked that they had no idea what was 
happening. 
Fraud awareness education 
should therefore be an integral part of the training 
programme, particularly for managers and staff in 
high risk areas 
such as procurement, and staff 
with key roles in fraud prevention and detection, for example human resources.

4.5 Prevention of fraud in specific business areas 
Controls will also be needed in specific areas of the business where a high risk of fraud has been 
identified. 
(a) 
Segregation of duties
 
is a key control in fraud prevention. Ultimately operational pressures may 
mean that segregation is incomplete. Management should nevertheless identify certain functions 
that must be kept separate, for example separating the cheque signing function from the 
authorisation of payments.
 
(b) 
Appropriate documentation
 
should be required for all transactions.
 
(c) 
Limitation controls
,
 
such as only allowing staff to choose suppliers from an approved list and 
limiting access to the computer network by means of passwords, can reduce the opportunities for 
fraud.
 
(d) 
Certain actions should be