Fraud??

bambilicious

:ohmy:

Hi All,

I dont think I quite grasp the idea of this but here goes.... For my unit 10 project I am having 2 write about 2 areas as I dont think the 1 area I wanted to do is large enough of a problem...what I have come up against now is what fraudulent things to write about, basically my 2 chosen topics are

1) Moving the petty cash from tin & spreadsheet to tin & Petty Cash account on the computerised accounts system.

2) Currently no systems in place for credit checking customers or chasing up of debt through other measures. (debt recovery)

Can anyone help me with this? What could the fraud aspects be to write about? I mean other than the fact that anyone can get hold of the tin as its in my top drawer with the key in it... does that come into it??

blobbyh

Just two suggestions;

1) If the computer system is accessible by several people at the same time rather than a single spreadsheet that may be stored locally (i.e. not shared) there could be a risk of someone taking physical cash from the tin and posting fraudulent transactions through the ledgers to cover the theft. And yes, an insecure petty cash tin will come into it.

2) If new customers are not name, credit or address checked you could be at risk of unknowingly offering credit to unsavoury customers who may place and honour several small orders to begin with - thus establishing a rapport and payment familiarity - before stinging you with a big theft.

The controls for prevention I'll leave up to you but they're not exactly difficult!

bambilicious

blobbyh wrote: »

Just two suggestions;

1) If the computer system is accessible by several people at the same time rather than a single spreadsheet that may be stored locally (i.e. not shared) there could be a risk of someone taking physical cash from the tin and posting fraudulent transactions through the ledgers to cover the theft. And yes, an insecure petty cash tin will come into it.

2) If new customers are not name, credit or address checked you could be at risk of unknowingly offering credit to unsavoury customers who may place and honour several small orders to begin with - thus establishing a rapport and payment familiarity - before stinging you with a big theft.

The controls for prevention I'll leave up to you but they're not exactly difficult!

Thats brilliant - thankyou. Just wasnt sure if i was on the right lines or not really. Good to know I'm kind of there.