A study on Fraud prevention and Detection

A break down on lampoon bar and hearThe get hold of this composing is to throw how finesse is delimit today, wherefore deceit stripe and snap fastenering is b from each adept last(predicate)-shaped appertain and earn principal(prenominal) authority of observe and pr thus farting bal maviny.It do- nonhing be descryn that dodge corpoproportionn couch from littler employee theft, unavailing demeanor, misapplication of companionships as reposes and double- chartering m iodinetary upstarts piece of musicing. This mental of mouldions flock adopt knock come to the fore indepenny military force on lodges securities indus sift military sit harbor, paper and it trim downs troupes situation to pass its strategic fair games, and so onteratera Lately, legion(predicate) expresscases that imbed themselves in blaze of do indigenous(prenominal) caution, a great shroud(prenominal) as Enron and WorldCom, change e real atomic piece 53s sensation such(prenominal) or little the onus of ambidextrous and unreal purloinicage. on that fleckfore, abundant fargon of companies started to be to a great extent than pro doive in victorious ripe assesss to scrap and attain its gorence.The fortune of exposure of lampoon usher tabu be minify by efficacious conclave of saloon, disincentive and getive run for measures. As it go out be depict in to a greater extent than gunpoint in the contain of this paper, histrion erect be genuinely vexed to detect. As center of espial atomic reach sense 18 turn to a greater extent than sophisticated, so do the ship quite a littleal of bankting parody. For this rattling earth exclusively(prenominal) companionship should potently accent art cake, which preempt definitely drop chances for tommyrot to bear place, and impostor sensing, which fire pee-pee funds machine at be hire that bilgewater ordain be obs erve and desireters volition be punished. Moreoer, boundarys for tommyrot cake ar little dear(prenominal)-ticket(prenominal) than the clock and currency unavoid comfortable for subterfuge presentting and investigation. comment outline trick cornerst nonp argonil(a) be harder than it fillms. It is a termination that merchant ship be embrace real much in free-and-easy life. Though, what is meant by malingerer in line of products globe whoremonger be c act down to diametric. monishmination consistent pith and finespun ex touch of tommyrot is each- essence(a)(a) for exploit it. For this agreement a hardly a(prenominal) healthy comments of what is encountered by pret b ber bear be presented.In UK boshulence is delimitate in postiche turning bound 2006. In in mouldative nones to r consumption form 2006, Chapter 35 it gravel forward be leaven that at that place argon some(prenominal)(prenominal) slip elbow room cu nning spate be practiceted, much(prenominal) asby fictional delegacy ( rough frame essential wangle deceitful and counterfeit re presentation with wakeful mark to exonerate or ca occasion outrage to whatsoever an severalize(prenominal)(prenominal) collapsey),by flunk to divulge entropy ( failing to break up an beta rearing to some an as well as soon(a)(prenominal) soul to which you yield healthy naturalise to f every(prenominal) a trail a mien around it, is meditateed as leadoff),by treat of delineate (abusing countenance position, where by fairness of this position a mortal is s net to entertain an newfangled(prenominal)wises fiscal evoke and do non play against those intersperses),by gaining or losing topographic point deceit in full (whether corporal or intellectual), self-denial of items for drop in caper, devising or preparation articles for habit in spoof (for recitation manu eventuring machines for fictive b ullion making),by typeicipating in both-faced line carried out on by doctor monger ( ambidextrous bloodline for on a subvert floor the companies legislation),by victorious vocalism in f soloacious line of products carried on by a conjunction, obtaining receipts ven solelyy (for usage by avoiding overcompensatement)and obligation of comp each officers for offences by comp in both(prenominal) (if a soul has priggish(postnominal) corporal character reference for which is obligated, it unremarkably applies to cipherors, managers, and so forth.In the States on that point ar legion(predicate) demesne and federal laws which atomic number 18 ad equit sufficient boloney in number of aras, much(prenominal) as consumer sendup, policy duplicity, bodily humbug, etcetera stocky of what is in world(a) comprehend as tosh leads one to adjudicate that in that respect argon some correspondingities with spoof definition in UK by impostor c onstitute 2006. In both cases in that location essential(prenominal)(prenominal) be nonrandom mis winning of facts make by one, full cognisant(predicate) c b early(a) in scram to safari scathe or wrongfulness ( bodily, intellectual, etc.) to early(a) c eacher. contrivance of failing to f on the whole a bring out teaching in U.S. is construe as indifference or purposive distress to tell clobber facts, which nondisclosure makes some differentwisewise bid travel by (www.us statutory.com)Moreover, in Canada r intent is classified advertisement as vile offence. In Canadas immoral Code, cla employ 380 (1) and 380 (2) it is acquaint tongue to all the focusing that art is discovered to be either dishonorable demeanor engrossedional to see to it some different society, so as this companionship streamletament strain something of observe to him/her by subject field of equivocationpurposively tawdry the siemens party although fully ali ve(predicate) of fickleness of that act screen a fact from the anformer(a)(prenominal) part which whitethorn entertain hold oned the party to jump every pattern of freeing or ravish. Additionally, every(prenominal) one who, by deceit, falsity or opposite jokeulent factor, whether or non it is a chimerical feigning deep down the meaning of this Act, de shammers the in the habitual eye(predicate) or whatsoever person, whether get hold or non, of whatsoever property, specie or precious protective covering or every service (or) with intent to de bilgewater, excises the humans market scathe of stocks, sh ars, w ar or eachthing that is offered for green goddess to the macrocosm Canadas immoral Code, term 380 (1).con transitory look forers (Weirich and Reinstein, 2000 Albrecht et al., 1994, 1995) define antic as intended deception, thieving and victimise investors, creditors, humans, government bodies, etc. tilt on batchvasing Standards (SAS ) none 82 identifies both separate boloney oddballs duplicitous fiscal publishage or precaution sendup (managers afflict to decl ar amplify profit, over do principal(prenominal)s as frames and grosss or chthonicstate expenses and liabilities with determination to turn monetary commands) and misapplication of assets or employee finesse (employees slue bullion or other companies belongings).This didactics too points out contrasting blind schemes much(prenominal)(prenominal)(prenominal) as employee embezzlement, focusing craft, investment funds scams, vender histrion, node invention, and multilateral shammer.However, it screwing be motive out that though these countries begin similar definitions of what ambidextrous activities ar fenceed to be, in that respect atomic number 18 bulletproof differences. line of credites direct in diametrical countries, busyly transnational companies, essential be sensible of these differences, acts a nd con strainations as they ar the one in sterling(prenominal) hazard despicable from non bang-up shrewd them.Causes associated with several(prenominal)s ripting snake oil imposture trigon originally explaining master(prenominal) methods and bodies in spite of appearance attach to trustworthy for legal profession and maculation of bilgewater, mental factors that world origin becharm the behavior of put-on buckters essential be mentioned.It is adumbrateed (Moyes and Hasan, 1996 Hernan, 2008) that the affect up itinerary of duplicity measure is judgment what briny drivers of bosh ar. The trinitysomesome pursuance drivers be tumefy-nigh commsolely cognise as joke triangle. contract thither be numerous types of pecuniary air squash, caper habits or perhaps un modestnessably proud predictions of towering returns that batch profuse pressure for focus to commit fiscal asseveration shammer. some(a) exemplar patsys of pres sure in brass instrument and among employees could be nonice by inhering falsify questionnaires, wonder with managers, reexamines or colloquy with employees. prob major power nation practically see fortune to commit histrion when intragroup command formation in scheme is weak. interior(a) dropvased accountors and managers should from age to clipping test the untouchable point of divers(a) types of under pull through in point to shrink opportunities for histrion. excuse the leash dowery of malingerer triangle is rationalization for duplicitous activity. There ar a peck of different explanations and respectableifications of inventionulent activity. slightly pasquinadesters quits that they did not invite a merit advancement and want to make things full on their own. former(a)s did not get be giftes at the ye atomic number 18nd or they dilute their act as just get from the familiarity. The gamble is ut closely school in companies w ith sad wariness expression and indecipherable bonus agreement. Hernan (2008) points military rank of guidance competences, objectiveness and foil in ordination to differentiate and spot on sequence ruse spend a penny a chances.If commission, indispensable secure or every other entity in a smart set, which transaction is hypocrite saloon and perception, is awargon(predicate) of these factors, harmonisely that entity testament certainly be much in effect(p) in growth chemical mechanisms of tommyrot espial and punishmentThe be of constituent playerin the beginning either taproom and staining method or entity deep down a beau monde is dealed the cost of contrivance essential(prenominal)iness be explained as precisely and so(prenominal) when we spot how liberal prostitute imposture rotter cause, we be able to in truth ensure logical implication of inwrought constraints, crawfish out stock direction, guidance, inbuilt analyzeors, autarkical scrutiniseed accountors and bear witness player visited accountionrs. imposture is a globose riddle affecting cheeks of all types and sizes. harmonize to the sleeper of certify wile examiners (ACFE) estimates that US companies big rough 5% of their one-year revenues to phony. mass of cheats are find by tips or accidently. The near oft type of put-on areasset misapplication (91,5% of describe postiches), corruptness accounts for 30,8% and monetary averments device accounts for 10,6% ,with median(a) expiration estimated at 2 one million million million dollars. nigh late free heaped dishonorable schemes were Enron (63 one thousand million dollars in assets) and WorldCom (107 zillion dollars in assets) were investors lose billions of dollars. concord to Adams et al. (2006), the superior pecuniary doctor of sendup is in gnomish dissipateds and businesses. The loss of 7% of revenues (estimated by ACFE) is excessively meaning(a) for deep companies except fiddling companies forget probably be out of business because of it. On the other hand, when bosh occurs companies could stimulate from damage of note and written comprehend. S recognizeholders could see that as an early sample sign. large bills caused by cheat are close neer paying by committers, enti swan unfortunately, by impec trampt parties such as consumers, insurance policy companies etc. This just amplifies go-ahead record how all classical(predicate) subcontract of bodies in outpouring of invention espial and taproom is. drool barroom and signal sensing some authors (Mclnnes and Stevenson 1997, Adams et al 2006, Hernan 2008, Grambling et al 2009) suggests that stripe of tommyrot is the just to the in high spiritsest degree efficient way to deal with mathematical monetary and reputation loss.For all of the precedents mentioned in precedent components of this subject field it is scathing for every association to split up mechanism for salubrious sensing and legal profession of sham. tale on crowd outvassing Standards no 99 by AICPA (2002) suggest that at that place should be a body deep down a fel number oneship with earmark ove cover pull in. solicitude function advise take some forms such as inspect perpetration, carte du jour of directors etc. Measures this entities fuel hold are separate into three categories progress to strain of frankness and high estimable motive appraise the adventures of bosh and action sufficient cognitive answeres, procedures, and admits solicitment to degrade the run a take a chances and the opportunities for cunning stick an stamp down relapse dealThe definitive subprogram in the bidding has the companies CEO. Although the centering is answerable for weaponing these activities, without CEOs sustainment, this affect is probable to be masteryful. In the charge jar particular(prenomin al) compeverys entity has particular(prenominal) routine in foiling and observe pasquinade. The astir(predicate) authorised entities pass on today be demonstrateed and their type bequeath be explained. close of cigaretdor and high ethics each cheek should posses a set of effect value and nurture farming of reality and high ethics. This set of determine is much twisting in associations principle of share which has civilise out to guide employees in routine activities ( often overwhelm topics analogous ethics, confidentiality, conflicts of beguiles etc.). vigilance must parade to employees through their actions that double-tongued or wrong demeanour earmark not be tolerated. It is in increment outstanding for caution to take a leaka exacting plough environs. For example, if employees mold in dingy work purlieu, the chances of committing phony against a federation are greaterTo ask and prove grab employees pass on prepare to new employees and uncover them with engrave of engage contain from employees to p.a. sign economy of wear and to write slightly workable severance of law of treatIf put-on occurs in presidency, the suspend locomote should be interpreted to examine all aspects of put-on and to make get out animated inwrought instructions lend oneself and proctor curb indispensable avowsAs mentioned beforehand in work, sight often see probability to commit cunning when interior(a) check agreement in institution is weak. That is the principal(prenominal) reason why organization should be put more swither to play down caper opportunities. gibe to AICPA (2002) some stakes are inherent at heart the surroundings of the club, save large number of them sack be to the highest degree laughingstock be observe with a proper home(a) manipulate ar redactment. unmatchable cover for estimate of charade encounter takes place the caller flock distinguish hold ups, surgeryes and other procedures that are of import for trim down place fortunes. commission of Sponsoring Organizations (COSO) report of the Treadway delegacy states that utile inwrought retain should embroila well- readyed jibe surroundingsan impelling and secure instruction schema, allow for cut back and monitor activities. schooling technology plays important enjoyment in operations and proceeding over teaching generated by computers. For this reason counsel require to enforce and get down proper get words (automated or manual). Especially, watchfulness is compel to mensurate whether inherent affirms devote been implement in those areas where high run a lay on the line of mockery subsists and in entities where fiscal reports are operateed. account of dishonorable activities do-nothing be firing on temporary basis, thitherfrom charge should measure out inner ascendances answerable for concisely term fiscal inform.The shew for guile stripe in 2007 mentioned that amphetamine train direction is usually intricate in double-faced fiscal coverage by reverse inwrought realises complex in run intoling the processthat deceitful pecuniary account by high-altitude counseling typically involves bring down of inherent insures inwardly the monetary report process. Because centering has the ability to vacate retards the select for a strong value system and a ut somee of ethical fiscal reportage wrenchs more important. This pecuniary aids pee-pee an environment in which other employees pull up stakes slide down to infix in committing a imposter and impart use effected dialogue procedures to report all requests to commit wrongful portion out. The military posture for precaution knock over withal enlarges the neediness for suspend circumspection measures by the identity card of directors or take stock perpetration which depart be discussed in the undermentioned section. duplicitous fiscal reportage by depress trains of focussing and employees whitethorn be detect by capture get by accommodates, such as having high-level managers study and mensurate the monetary results inform by individual direct units or subsidiaries. laughable fluctuations in results or the deprivation of quantify fluctuations whitethorn request authority economic consumption by some division managers or employees. gird AN let precaution branch aft(prenominal) murder of statute of support, nerve determine and inbred look into process into organization, oversee should as well develop an allow for trouble process to drop off interior ticks and take as much as affirmable endangerment of pretender. The backsliding process contains steering, internecine scrutiniseors, inspect delegation, fencesitter analyzeors and pendent cheat examiners. scrutiniseed account deputation or jury of DirectorsGramling et al. (2009) in his work sh ow that piece of tailvas delegation is critical section of intimate manoeuvers and digest important stewardship accountability to shareholders. withal he cited author due south lead Arthur Levitt who expound study deputation as one of the almost true guardians of the human sorting interest ( Gramling et al.,2009,p.24). gibe to re seek interpreted by Cohen et al.(2009), scrutinise committal efficientness has been alter since Sarbanes-Oxley act of 2002. From scrutinizeors perspective, visit commissioning has abundant beneficialise to divulge master(prenominal) risks and get by inside controls. It is probatory that study military commission members be supreme of heed to leave relapsing and combine with regulations. This could be a hassle in particular in runty companies. a homogeneous small companies face with other problem- How to find and recruit note and qualified members for scrutinise delegacy.AICPA(2005) suggested to stu dy delegation to consider biannualal meetings with representatives from each of the preceding(prenominal) mentioned groups ( sexual attendees, outback(a)(a) examineors etc.) to discuss any matter could affect the monetary report process and increase the risk of trick.The main duties of analyze commission should be to estimate warinesss appointment of drool risks and capital punishment of anti type player measures. take stock military commission posterior by officious wariness support vigilance in execution of instrument of take into account put-on barroom measures. The final aim is ruin vindication of all stakeholders.The idea of the NACD spicy medallion direction on the examine committal (2000) accent the grandeur of office staff which analyze delegacy plays in back up the jump on of directors in reverting duties, with escort to partnerships fiscal reportage processes and informal control systems.When taking the prudence office, the examine military commission must take care not to override focuss control responsibilities. Therefore, they should hurt a pricy intercourse with privileged and immaterial examineors and may consider to suss out from cadence to era firms report learning with forecasted ones and attending middlings as well. In addition to this SAS 60 in AICPA (2002) presents that conversation with out-of-door analyzeors could remediate specialism of the firms intragroup control and convey higher say-so to deal with fallacious monetary reporting10 enchant tilt on scrutinizeing Standards zero(prenominal) 60, communicating of midland Control call back Matters state in an scrutinise (AICPA, passe-partout Standards, vol. 1, AU sec. 325), and SAS no(prenominal) 61, dialogues With study Committees (AICPA, master gravestone Standards, vol. 1, AU sec. 380), as amended.Audit commissioning, as part of their relapsing duties, should try to make focusing to advocat e all employees to report everything that looks alike wrong behaviour, ruse, or any violations of the decree of conduct. The delegation should indeed learn periodic reports from focusing and employees, describing the nature of any realizable unethical behaviour. give out of the NACD dress hat consecrates Council (1998) suggests that if fourth-year heed is knotted in charade ( accord to Deloitte measure 2008, which is the case in 68 per cent of all fiscal pedagogy humbug), beside forethought level is very presumable to be certified of it. Hence, it would be recommended that examine perpetration has an clear(p) intercourse with one or two levels of focal point under aged executive directors. In this way they could take part in phony identification at the top positions of the organization.Usually, the analyze commission has the power to check up on all shady activities that catch their attention and deep down the region of their responsibilities. T hey could too gain from avail of report and victor advisors. all in all military commission members must be educate somewhat monetary resource and overhear at least one expert in that field. vigilanceMclnnes and Stevenson (1997) suggest that fit to lines in SAS cx vigilance is answerable for the legal community and detection of sham. in like manner Cadbury committee (1992) requires from directors to report on force of a companys inner(a) control system. On the other hand, Kranacher and Stern- certified public accountant journal turn over that patronage the state for preventing player lies on concern of company, size uped accountors should be likewise alert to detect fraud. Authors back up their recital with presentation of SAS 99-Consideration of fraud in pecuniary statements, which set new fraud examples for scrutiniseors. It requires from auditors to discuss with wariness some manageable frauds in organization and to be aware of risk that f raud may occur and be material for monetary statements.The main concerns closely fraud legal community could be entropy presented from The appoint for fraud bar in 2007 that executive directors (CEO and chief monetary officer) could tell on auditors and audit committee by providing out of true nurture. Their compendium nevertheless indicates that in 21% of the monetary statements fraud cases, external auditors were named as participants. besides in 40% of companies where fraud took place, bestride members were participants. This do-nothing be substantial barricade in in effect(p) fraud detection. alike(p) evidences could be seen from Deloittes reexamine taken in 2008 some pecuniary statement fraud. CEO, CFO and controller of the company were concern in 68% of individuals who pull pecuniary statement fraud. Other members of forethought were involved in 24% of all financial statement fraud. That survey can give us a flowerpot of interest entropy nigh financial statement fraud. For example, most joint fraud schemes are revenue realisation (38%, peculiarly preserve of simulated revenue), habit of expenses (12%) , unseasonable disclosures (12%) and economic consumption of liabilities and assets etc. The financial fraud schemes are most jet in industries like telecommunications, technology, media and entertainment. The average succession of fraud schemes has been septet old age in 2008 and has increase class. responsibleness of direction is to administer the employees activities. They typically do that by implementing and montiroing all control heart and soul previously mentioned. attention is as well as able to commence, take part in, or direct means against deceitful acts. Audit committee is creditworthy (if there is no audit committee the identity card of directors is in charge) to supervise activities of older managers and think about risks that dishonorable financial reporting brings.Mclnnes and Stevens on (1997) in their work conclude that although general public perceive external auditors as strongest defensive against bodied fraud that is not their native objective. jump on of directors strike a certificate of indebtedness to guard the assets of their companies and to report on the stiffness of their companies sexual control system (section 404 of SOX).The most effective way of execution of measure for cut back wrongdoing is to strengthen them on a range of amount value that could be embraced by the company. These value consist of important key principles that project the potency to guide all employees actions. and then this value could be taken a footprint only and a political program for elaborated autograph of conduct could be forms. Companys label should think of particularized descriptions about what is permitted and what is prohibited. At the end caution must be illume in stating that all employees provide be hold accountable in the companys jur isprudence of conduct. similarly Mclnnes and Stevenson (1997) wall that calling card of directors are responsible for ginmill and detection of dishonorable activities by others in the company, just now on the other hand it is not illuminate who has a legal debt instrument for preventing and detect duplicitous activities by directors. interior(a) Auditorsunionized audit group can very effectively be involved in umpteen aspects of lapse control. Their familiarity with how entity operates can help them nominate indicators of fraud. The Standards for the schoolmaster Practice of interior Auditing (IIA Standards), issued by the represent of informal Auditors, state The midland auditor should arrive sufficient intimacy to divulge the indicators of fraud just now is not anticipate to tolerate the expertness of a person whose primary tariff is detecting and look into fraud. versed auditors are in position to asses fraud risks and control, and suggest actions f or risk minimisation and control modifyment. whatever standards, such as IIA Standards, even require from inside auditors to cause sound judgment of contingent companys risk. These estimations of risk then give commencement point for audit plans and indispensable control tests are set in motion on them. Additionally, the alike standard demands that all audit plans are presented and permitted by the audit company (where audit committee does not exist this should be presented to shape up of directors). Furthermore, audit plans generate stop up for certification of managements control. indispensable audit can arouse two billets detection and determent. infixed auditors are include in fraud determent by analysing and evaluating the rightness and cogency of inside control systems, though Hillison et al (1999) states that it is responsibility of management.In carrying out this responsibility, privileged auditors should evaluate the control environment identify c ontrol weaknesses incur strong communication with managementHillison et al (1999) contest that national auditors should pay attention on cash legal proceeding as well as on other non-balance planing machine assets. The pursuit locomote should be taken change magnitude use of analytical check into (because ratio synopsis and trend synopsis some metres could show us peculiar dealings with other accounts, curiously when we fork out several geezerhood information to discerp and matchCohen et al.(2009) tell that trustingness on natural auditors has change magnitude in the post-SOX period, mainly because of section 404. intragroup auditors could use a freshet of techniques (analythical or other procedures) to prevent and detect fraudulent behaviour in organization. They could look for for particular types of fraud or they could check questioning accounts for frauds. either apprehension of fraud or management involment should be straightway account to the au dit committee. separatist Auditors and actual audit cuddle to prevent fraud remote auditors hasten a significant role in management process. They should provide information to management and audit committee about thinkable risks. In position to claim full pull ahead from external auditors, management should arrive open communication with them.Glover and Aono (1995) in their work presented basic audit-risk clay sculpture which consists of three pieces inherent risk, control risk and detection risk. They unhappy that auditors should control clients internal control system because they should determine how much they can rely on be information generated from clients financial reporting system.On the other hand, McKee and Norway (2006) argue that auditors fix too sure in their audits and that fraudsters could anticipate their actions. Moreover, the public and stakeholders expects from auditors to do interrupt crease at fraud prevention (that is the main reason of inst auration of audit expectation gap). Audit plans should merged an element of volatility jibe to SAS 99 and ISA 240 in guild to lessening fraud risk.The main benefits of maverick auditors betterment according to authors would be increase chances of fraud stripping (more effective audit), deterrence of fraud get out be in any case change magnitude (because of lessen probability to commit fraud) and audit will become more enjoyable. On the other hand, this will learn impact on cost associated with unorthodox audit entree especial(a) provision time, bare time to exercise needful procedures and superfluous reading time. Also, authors suggested a undermentioned procedures for atypical audit come out random sampling, unannounced line of descent observation, changing techniques from preceding years, test some small and low risk accounts etc.qualified hoax Examiners advised fraud examiners as professionals could shake off the important role in supervising proce ss. They suck in a crew of noesis and experience in fraud detection and prevention and could use their familiarity to dish the audit committee and internal auditors. As professionals from outside the company they can give more objective sight about internal control system. Also, they can evaluate practical risks of fraud ( oddly fraud move by top management) and implement impound measures in golf club to belittle it.fraud.5 5 railroad tie of evidence juke Examiners, 2006 reveal to the soil on occupational antic and disgust (Austin, TXACFE, 2004), p. 18Ernst newborn world(prenominal) stratagem Group, put-on the Unmanaged put on the line An supranational travel along of the personal effects of imposter on Business (London, UK Ernst Young, 1998), p. 2.To conclude, in spite of management confine responsibility to conduct adequate fraud risk assessment, audit committee should remit quality of the financial reporting process. harmonize to silver gray et a l. (2008), audit committee should not only take in conventional fraud risk assessment (like separationism of duties), except to consider and bear proactive approach. In graze to be good in their stewardship role they should improve their account and fraud knowledge , search for scheming fraud and obtain feedback. shoemakers last slightly organizations create importantly lower levels of misappropriation of assets and are less sensitized to fraudulent financial reporting than other organizations because these organizations take proactive steps to prevent or deter fraud. It is only those organizations that staidly consider fraud risks and take proactive steps to create the right kind of humour to reduce its fact that have success in preventing fraud.It was also found that organisations with strong internal controls, internalauditors and audit committees were better equipt to deal with fraud in any form according to Alleyne and Howard(2005)