What a mess – how could all this was allowed to happen?

Dr. Atis ZakatistovsRBS

March 24, 2014

Fraud

• A deception deliberately practiced in order to secure unfair or unlawful gain.

Fraud awareness quiz (Steve Giles)

• Who is responsible for preventing and detecting fraud in your organization?

• What percentage of employees do you consider to be totally honest?

• What percentage (by value) of internal fraud is committed by women?

• Who is responsible for investigating fraud in your organization?

Generic controls

• Segregation of duties;• Delegation of authority and authorisation

limits;• Physical and computer security over assets,

records and information;

Fraud prevetion – hard controls

• Staff vetting;• Internal controls;• Anti-fraud policy statement;

Fraud prevention – soft controls

• Employee support programmes;• Fraud awareness training;• Management review of internal controls;

Fraud prevention plan

• An assessment of fraud risk;• A policy statement, including a fraud response

plan;• A fraud awareness training program;• Staff vetting procedures;• A whistle-blowing hotline.

Fraud triangle (Donald R. Cressey)

• Psychological pressure;• Opportunity;• Rationalisation;

• Thank you!

• Dr. Atis Zakatistovs• E-mail: zakatistovs@yahoo.com• +371 2 941 3992