Sample Fraud Policy Analysis

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Understanding ACFE Sample Fraud Policy: The purpose of this document is to communicate organization’s policy regarding the dissuasion and investigation of alleged misconduct and deceit by employees and others, and to provide specific instructions regarding suitable action in case of suspected violations. The back ground of sample fraud policy is an unblemished statement forbidding illegal or fraudulent activity for the benefit of the organization. Scope of the policy outlines the scope of application of the policy, which may involve employees as well as external entities having any kind of relationship with the organization, no matter how influential it may be. The purpose of the policy statement is to impart company policy regarding…show more content…
An obligation that all investigative activity be reported to the audit committee. Does the ACFE sample fraud policy obstinate or adaptable? The ACFE Sample policy itself mentions under actions constituting frauds that the terms defalcation, misappropriation, and other financial irregularities refer to, but are not limited to number of instances, it means that there may be ‘N’ number of such instances as per the perception of the organization. In the administration part of the ACFE Sample policy it is mentioned that the policy will be reviewed annually and revised as needed. This corroborates that the ACFE sample fraud policy is not obstinate and is adaptable to the requirements of the organization. ACFE Sample Fraud Policy is silent about the following elements which can be added to formulate a strong fraud policy: 1. A clear statement about training on fraud prevention and identification. Training shall be included in the training calendar every year and will be imparted to employees and Nodal Officers of the organization. Fraud prevention, detection and handling responsibilities are the ongoing continuous responsibilities. It is training and development programs conducted in the organization that bring about tremendous changes in terms of knowledge, job skills, attitudes and behaviour of its employees and maintain a business atmosphere of fairness, ethics and honesty for the employees, its customers, its suppliers and anyone else with whom organization have a…show more content…
A clear statement about managing external relations. The policy must also forbid cover-up; fraud is shameful news, but cover-up can augment the loss and cause it to slide into a disaster. In the case of substantiated fraud, organization will have to take immediate steps to mitigate potential loss of organization’s reputation and credibility with subscribers and partners who are involved in funding or delivering work in the particular context in question. In high profile cases of fraud, duly authorized communications officers shall manage and monitor any media response. They are to issue information only when it is approved by the CEO, in consultation with the Legal Adviser. Communications Officers shall retain a complete record of any information released, including the content and the

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