MAS Project - Fraud

System · May 2005

Have just seen my tutor who wants a 'bit more' on my project. Namely fraud. Have done a bit regarding dodgy invoices etc. On the Evidence Summary Report (page 28) there is a title CHANGES AFFECTING SYSTEMS: - External regulations - Organistional policies and proecdures She wants this bit detailed. I have no idea what I can put in there. Any suggestions gratefully received. Sue

System · May 2005

MAS Project - Fraud

 Policies and procedures would be things like having one person put the invoices on the system but another person paying them - that way hopefully any fake ones would be found because they looked dodgy. External regulations - Sarbanes Oxley maybe? Sorry not to be any more help. Perhaps if my tutor was any good I'd be able to help. I think she's got a compulsive disorder and feels compelled to keep projects for as long as possible before handing them back.

System · May 2005

MAS Project - Fraud

Hi Scooby Sounds as though you are nearly there with your project. I think from what you have said the external regulations relates to changes in legislation such as:- Taxation - PAYE, VAT and Corporation Tax Company Law as detailed in the Companies Act 1985 & 1989 Data Protection Law as detailed in the Data Protection Act 1998 Late Payment Law - Late Payment of Commercial Debt (Interest) Act 1998. It may also be worth mentioning UK Accounting Standards and the impact of the introduction of International Accounting Standards. The fraud bit could be expanded by reference to different types of fraud:- Theft as defined by the Theft Act False accounting also defined by the Theft Act - where property or money is passed to the wrong person (payroll perhaps) Bribery and Corruption - taking or giving bribes which may influence the actions of others (Prevention of Corrupt Practices Acts) Deception - obtaining property, money, services or evading liability by deception (Theft Act) Collusion - a setup between an employee and someone else outside the company - 'dodgy' invoices being presented by someone on the outside for goods and services never provided and being authorised by someone on the inside. It may also be worth mentioning how management would detect fraud - Employees acting suspiciously/higher spending than would be expected/working longer hours than necessary and taking less holidays than entitled to in order to conceal and protect fraudulent activities/political or ethical issues with company presenting an axe to grind. A risk assessment would be a good appendix for this illustrating the likelihood and impact. This also opens up all sorts of avenues for the opportunities part of the SWOT analysis in terms of designing control systems to avoid the risk of fraud. Hope this has helped a bit. Not sure what Sarbanes Oxley is so unable to comment.

System · May 2005

MAS Project - Fraud

Hi Scooby I have just got my project back - thankfully finished. Topics of fraud include:- overtime payments for overtime not done and just signed off lack of stock control, where goods can be taken without knowledge goods ordered and invoices paid and signed for by the same person - no double checks made lack of inventory of equipment fraudulent use of time - that is coming in late, going home early, long lunch breaks. Organisational policies and procedures are usually held by the company and just detail how each procedures should be carried out and what checks must be made. Hope this is some help. Good luck in finishing your project. EVa

System · May 2005

MAS Project - Fraud

Thanks for advice - thats given me some more to go on.

System · May 2005

MAS Project - Fraud

'fraudulent use of time - that is coming in late, going home early, long lunch breaks' we all try to do that!

MAS Project - Fraud

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