Bpp learning Media is an acca approved Content Provider

prohibited
 
such as leaving a computer terminal without logging off. 
(e) 
Internal audit
work should 
concentrate 
on these areas.
 
4.6 Detection and prevention 
A primary aim of any system of internal controls should be to 
prevent fraud
. However, the very nature of 
fraud means that people will find ways to get around existing systems. It is equally important, therefore, 
to have controls in place to 
detect fraud
if and when it happens. 
4.7 Internal controls 
Controls must be developed in a structured manner, taking the whole spectrum of risk into account and 
focusing on the key risks identified in each area of the business. 
Let us think about appropriate controls that could be introduced to combat fraud.
4.8 Physical controls 
Basic as it seems, physical security is an important tool in preventing fraud. Keeping tangible assets 
under lock and key makes it difficult for staff to access them and can go a long way towards 
discouraging theft. 
4.9 Segregation of duties 
Staff who have responsibility for a range of tasks have more scope for committing and concealing fraud. 
Therefore the obvious way to control the risk is to segregate duties.
If an employee's duties do not extend beyond one domain, it will be more difficult for an employee to 
conceal a fraud. It is more likely that it will be picked up at the next stage in the process. 
So, for example, the employee responsible for recording sales orders should not be the same person 
responsible for maintaining inventory records. This will make it more difficult to falsify sales or inventory 
records, as a discrepancy between sales figures and inventory balances would show up.
Segregating responsibility for packaging goods for delivery from either of the recording tasks would also 
help to minimise the risk of theft and increase the likelihood of detection. 
BPP Tutor Toolkit Copy

---

CHAPTER 10
//
IDENTIFYING AND PREVENTING FRAUD