FIGHTING EMPLOYEE FRAUD
The most common types of employee fraud include:
The most common types of employee fraud include: - Inventory theft - Cash skimming theft - Credit card refund theft - Unauthorized use of rooms - Food server theft schemes - Bartender theft schemes - Server tip conversions - Food waste consumption - Padded expense reports - Fake and duplicate invoices - Time clock wage theft - Paid time off misappropriation - Ghost employee - Key control open access theft The list goes on! Inherent risk is defined as "the probability of loss arising out of circumstances or existing in an environment, in the absence of any action to control or modify the circumstances". Standard Operating Procedures (SOP's) are established to limit employee fraud but often are not being followed due to high employee turn over and lack of management oversight. Ways to fight employee fraud: - Document opportunities for fraud - Establish SOP's that are designed to limit fraud - Update SOP's to meet changing technology and industry best practices - Train staff how to utilize SOP's - Verify compliance with existing SOP's
- Perform surprise inspections
- Utilize an "outside" auditor to perform internal audits All too often, management does not have the time or resources to perform these tasks, and require help from an outside auditor.