Understanding the Prevention of Fraud and the Deterrence Theory

This post will focus on the Perception of Detection - Reporting programs. Every member of staff in your company should know where to report any suspicious,unethical,or illegal behavior. It should be well communicated in the reporting program that: Fraud, waste, and abuse occur in nearly all companies. Such conduct costs the company jobs and profits.

The company actively encourages any employee with information to come forward and anyone who does so must be able to do this anonymously without fear of recrimination for good faith reporting. There is an exact method for reporting an incident, such as calling a hotline set up for this purpose. The report need not be made to one’s immediate superiors or senior colleagues.

For more in-depth studies on this subject, please visit the Association of Certified Fraud Examiners.