Internal Audit Handbook（2007）D13-Fraud Prevention.pdfVIP

Special Topics and Supplementary Discussion D | 13 Fraud Prevention 13 Fraud Prevention Key Points ••• • Fraud can be committed in any company. Therefore all companies should pre- pare their process structures for such an eventuality. • Fraud should be identified and evaluated reactively and proactively. All measures should also be taken for adequate prosecution of those who commit fraud. • An organization should have a clear, unambiguous code of conduct. • Guidelines and instructions must be comprehensible and accessible to all em- ployees. • An organization should have a shared set of values and clearly communicate the consequences that fraud entails. Every company must face the subject of fraud, first because many companies have Dealing with FraudDealing with Fraud experienced the negative impact of fraud in the form of financial losses and damage to their image, and second because this has been necessitated by legal requirements such as SOX. Thus, it has become increasingly important to equip the company adequately so it can deal with such problems. Within its area of responsibility, In- ternal Audit investigates and assesses very different types of incidents and suspected fraud. Internal Audit is an integral part of the company’s handling of fraud, although other departments, such as Corporate Legal and Corporate Security are also in- volved. To effectively deal with fraud it is important to have a clearly structured organization, which immediately deals with the relevant circumstances of fraud and triggers, coordinates, and performs the necessary activities quickly, accurately, and reliably. The corporate legal department is th