Page 166 - SBL Integrated Workbook STUDENT 2018

Chapter 13

5.3 Fraud response

 The fraud response plan sets out the arrangements for dealing with suspected
cases of fraud, theft or corruption.

 It provides procedures for evidence-gathering that will enable decision making
and that will subsequently be admissible in any legal action.

 The fraud response plan also has a deterrent value and can help to restrict
damage and minimise losses to the organisation.

Organisations response to fraud may include:

 Internal disciplinary action, in accordance with personnel policies.

 Civil litigation for the recovery of loss

 Criminal prosecution through the police.

Note: A fraud policy statement, effective recruitment policies and good internal
controls can minimise the risk of fraud.

Illustrations and further practice

Now try TYU question 2.

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