FRAUD PREVENTION QUICK CHECKLIST

Do you need to size up how vulnerable your company might be to fraud? Ask the following questions!

  1. IS ONGOING ANTIFRAUD TRAINING PROVIDED TO ALL EMPLOYEES OF THE ORGANIZATION? Y/N
  2. DO EMPLOYEES UNDERSTAND WHAT CONSTITUTES FRAUD? Y/N
  3. HAVE THE COSTS OF FRAUD TO THE COMPANY BEEN MADE CLEAR TO EMPLOYEES? Y/N
  4. HAS A POLICY OF ZERO TOLERANCE FOR FRAUD BEEN COMMUNICATED TO EMPLOYEES THROUGH WORDS AND ACTIONS? Y/N
  5. IS AN EFFECTIVE FRAUD REPORTING SYSTEM IN PLACE, SUCH AS A THIRD PARTY HOTLINE? Y/N
  6. HAVE EMPLOYEES BEEN TAUGHT HOW TO COMMUNICATE CONCERNS ABOUT KNOWN OR POTENTIAL WRONGDOING AND WHERE TO SEEK ADVICE WHEN FACED WITH CERTAIN UNETHICAL DECISIONS? Y/N
  7. DO EMPLOYEES TRUST THAT THEY CAN REPORT SUSPICIOUS ACTIVITY ANONYMOUSLY AND/OR CONFIDENTIALLY AND WITHOUT FEAR OF REPRISAL? Y/N
  8. HAS IT BEEN MADE CLEAR TO EMPLOYEES THAT REPORTS OF SUSPICIOUS ACTIVITY WILL BE PROMPTLY AND THOROUGHLY EVALUATED? Y/N
  9. DOES THE ORGANIZATION SEND THE MESSAGE THAT IT ACTIVELY SEEKS OUT FRAUDULENT CONDUCT THROUGH FRAUD RISK ASSESSMENTS? Y/N
  10. ARE SURPRISE FRAUD AUDITS PERFORMED IN ADDITION TO REGULARLY SCHEDULED FRAUD AUDITS? Y/N
  11. IS THE MANAGEMENT CLIMATE AND TONE AT THE TOP ONE OF HONESTY AND INTEGRITY? Y/N
  12. ARE EMPLOYEES SURVEYED TO DETERMINE THE EXTENT TO WHICH THEY BELIEVE THAT MANAGEMENT ACTS WITH HONESTY AND INTEGRITY? Y/N
  13. HAVE FRAUD PREVENTION GOALS BEEN INCORPORATED INTO THE PERFORMANCE MEASURES AGAINST WHICH MANAGERS ARE EVALUATED? Y/N
  14. HAS THE ORGANIZATION ESTABLISHED, IMPLEMENTED AND TESTED A PROCESS FOR THE OVERSIGHT OF FRAUD RISKS BY THOSE CHARGED WITH CORPORATE GOVERNANCE? Y/N
  15. ARE FRAUD RISK ASSESSMENTS PERFORMED TO PROACTIVELY IDENTIFY AND MITIGATE THE ORGANIZATION’S VULNERABILITIES TO INTERNAL AND EXTERNAL FRAUD? Y/N
  16. ARE THE FOLLOWING ANTIFRAUD CONTROLS IN PLACE AND OPERATING EFFECTIVELY?
    1. PROPER SEGREGATION OF DUTIES? Y/N
    2. USE OF AUTHORIZATIONS? Y/N
    3. PHYSICAL SAFEGUARDS? Y/N
    4. JOB ROTATION? Y/N
    5. MANDATORY VACATIONS? Y/N
    6. DOES THE INTERNAL AUDIT DEPARTMENT HAVE ADEQUATE RESOURCES AND AUTHORITY TO OPERATE EFFECTIVELY AND WITHOUT UNDUE INFLUENCE FROM SENIOR MANAGEMENT? Y/N
    7. DOES THE HIRING POLICY INCLUDE THE FOLLOWING?
      1. PAST EMPLOYMENT VERIFICATION AND REFERENCE CHECKS? Y/N
      2. CRIMINAL, CREDIT AND BACKGROUND CHECKS? Y/N
      3. DRUG SCREENING? Y/N
      4. EDUCATION VERIFICATION? Y/N
      5. ARE EMPLOYEE SUPPORT PROGRAMS IN PLACE TO ASSIST EMPLOYEES STRUGGLING WITH ADDICTION, MENTAL/EMOTIONAL HEALTH, FAMILY OR FINANCIAL PROBLEMS? Y/N
      6. IS AN OPEN DOOR POLICY IN PLACE THAT ALLOWS EMPLOYEES TO SPEAK FREELY ABOUT PRESSURES, PROVIDING AN OPPORTUNITY TO ALLEVIATE SUCH PRESSURES BEFORE THEY BECOME ACUTE? Y/N