acfe fraud prevention check-up - BKD

ACFE FRAUD PREVENTIONCHECK-UPACFE FRAUD PREVENTION CHECK-UP5. Process-level anti-fraudcontrols / reengineering❑❑To what extent has the organization implementedmeasures to eliminate or reducethrough process reengineering each ofthe significant fraud risks identified in itsrisk assessment? Basic controls includesegregation of duties relating to authorization,custody of assets and recording orreporting of transactions. In some casesit may be more cost-effective to reengineerbusiness processes to reduce fraudrisks rather than layer on additional controlsover existing processes. For example,some fraud risks relating to receiptof funds can be eliminated or greatly reducedby centralizing that function or outsourcingit to a bank’s lockbox processingfacility, where stronger controls can bemore affordable.❑❑To what extent has the organization implementedmeasures at the process level designedto prevent, deter and detect eachof the significant fraud risks identified inits risk assessment? For example, the riskof sales representatives falsifying sales toearn sales commissions can be reducedthrough effective monitoring by theirsales manager, with approval required forsales above a certain threshold.ResultsScore from 0 (processes not in place) to 10points (processes fully implemented, testedwithin the past year and working effectively).Score:ACFE.com (800) 245-3321 / +1 (512) 478-9000 7