The Benefits of a Fraud Hotline
- Topics:
- Decision Analysis
- Tags:
- Benefit,
- Business Operations,
- Fraud,
- Litigation
- Source:
- The CPA Journal
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Overview: This article is mainly a case-study which showers light upon the problem faced by companies wrt fraud. Various solutions have been discussed in this article.The two actual cases summarized above highlight the increasingly serious problem of fraud in the workplace.Consistent with the cases cited earlier, the report also indicates that: Most frauds are known to others in the victim organization, Most frauds are detected after receiving tips from those with knowledge of the fraud. Since most frauds are known to others, organizations must facilitate the transfer of this information from those who have it to those who need it. A fraud hotline can provide the following benefits: First, and most obvious, it can effectively uncover fraudulent activity. Fraud losses tend to increase over time, so early detection is important. In summary, fraud hotlines can reduce losses resulting from fraud, negative publicity, and poor workplace morale. They improve employee morale and loyalty by empowering employees to speak up and make a difference. Effective hotlines promote a desirable work environment that, in turn, can enhance the organization’s ability to attract and retain quality employees. In an environment of declining ethical values, hotlines are a necessity for organizations wanting to remain competitive.
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Format: HTML | Date: Jul 2003 | Pages: 1
