Few things are as devastating to a business’ reputation as internal fraud – it undermines staff morale and creates a new uncertain relationship with stakeholders such as suppliers, investors and compliance authorities.
News bulletins and newspapers all talk of the massive corruption being unearthed in South Africa – don’t think your business is immune.
The bulk of fraud happens around procurement which makes it a good place to start. Use your accountant here – you will need his or her expertise plus your accountant will have an independent, impartial view of your business.
Whilst every business is unique you should ensure your system has the following basics in place:
Judgment and common sense should be your guide e.g. it isn’t time consuming to do an independent check on new suppliers whereby you phone their number (in the current Eskom/Transnet investigations, an early indicator of fraud is the supplier being essentially a front – the telephone is seldom answered and the address turns out to be a small unmanned office).
We all know how destructive fraud is to a business – make sure you put into place the systems needed to block it in your company.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.