There are several internal controls that can help prevent financial fraud within an organisation. Some of the best practices include:
1. Segregation of duties: Assigning different responsibilities to different individuals and ensuring that no one person has too much control over a particular function.
2. Access controls: Limiting access to sensitive information, such as financial records, to authorised personnel only.
3. Authorization controls: Requiring approvals from multiple individuals for certain transactions or expenses, particularly those that are out of the ordinary.
4. Regular audits: Conduct regular audits of financial transactions to detect any irregularities or anomalies.
5. Whistleblower policies: Establishing a mechanism for employees to report any suspected fraudulent activity anonymously and without fear of retaliation.
6. Training and awareness: Providing regular training and awareness programs to employees on fraud prevention, detection, and reporting.
By implementing these internal controls, organisations can reduce the risk of financial fraud and protect their assets.
