INTERNAL CONTROLS MADE EASY

Many employees involved in fraud have a history of dishonesty with previous employers. Check references for ALL prospective employees and obtain a police check for those handling money.

Controls over bank accounts including dual signatories, not pre-signing cheques, regular and timely bank reconciliations and not forgetting to implement controls and passwords over internet banking arrangements which typically only require one-person authorisation.

If you have stock, keep track of and record stock receipts and issues promptly, carry out regular stock takes and investigate variations, measure stock-turn by product line and make sure you have arrangements in place to authorise and dispose of supposedly slow moving stock, ideally returning to the supplier.

If your business has cash takings, complete a daily cash register summary form, make sure under and over balances are investigated, bank cash received daily intact, ensure that large sums of money are not left lying around the premises and that separate cash floats are used for petty cash expenditure.

False invoicing is another favourite. Here, raise official orders for all supplies, match actual receipts to orders, only use a small number of approved suppliers, and get the relevant person or department to approve the invoice before payment.