ABSTRACT
This chapter looks at how those responsible for fraud within an organization can help to prevent internal fraud. It starts by setting out good pre-employment screening practices, and then explores why this is not enough, proposing two other elements which are necessary to help a business provide an effective response to staff fraud. As far back as 2001, the Chartered Institute of Management Accountants (CIMA) identified the absence of adequate recruitment screening as a key fraud risk. Application is important that some checks are undertaken throughout employment, not just at application stage, as this enables a firm to identify any changes in an employee's personal circumstances which may present a high fraud risk. The aim of good screening is to establish the true position regarding an individual's identity, previous employment and background, academic and professional qualifications, and financial probity. Many firms place new staff straight into their posts, giving them access to company systems, confidential information, customer details and accounts.
