Rotational duties
Required annual leave
Extensive hiring process
Background checks
Reference checks
Employee training manual
EXAMPLE:
- Nothing specific in our example – what would you recommend?
HR controls are not the responsibility of the accounting team but ensure the right people are in the role.
They also include:
- Rotational duties – as we saw in one of our earlier cases, when another employee took on duties of the accountant, the fraud was discovered
- Annual leave – similarly, this ensures that certain tasks are done by others
– Typically to perpetrate fraud, you need to ALWAYS be at work
- Hiring process – to make sure you hire competent and honest people to begin with
- Training manuals / processes to ensure all employees understand their roles
Qs: What would you recommend in our example?
Interview process to hire the accountant – ensure she has the experience and education to do the job. Check her references from previous positions.