Risks of financial fraud

[Starmix]

Fraudulent activities are rampant this time not only online, but likewise offline. Fraud risks may vary and these include theft of assets, fraudulent disbursements, manipulation of expenses, and inappropriate journal entries. If this occurs in a particular business, ot means to say that the business owner lacks time to evaluate the performances of the people assigned in money matters. The net income could be manipulated by the accountant or a cashier and the other sales will be set aside for personal gain illegally. Manipulations are done within the business center and if found out of the unlawful acts, the reputations of the accountant, the bookkeeper, disbursement officer and procurement personnel will be at stake and their sanctions will be a harsh punishment either to land in jail or resign. They are shameless and greedy people.

 

[Suba]

The main risk of financial fraud is of course that you will lose assets or money. That is why accounting procedures are implemented so that each section/department will control each other, such as the warehouse, purchasing, and sales will control each other. If there is a discrepancy in the final balance, it needs to be evaluated or audited by an internal accountant.

 

[Starmix]

Yeah, that's the function of an internal auditor. I noticed that in private colleges and universities they have internal auditors. It's a must to have an IA to protect the finances of the company.

 

[Suba]

Yeah, that's the function of an internal auditor. I noticed that in private colleges and universities they have internal auditors. It's a must to have an IA to protect the finances of the company.

But being an internal auditor, even though you have a big salary, is not easy when carrying out your duties, many people don't like it, especially bad employees. because his job is to monitor all financial activities.

 

[Starmix]

But being an internal auditor, even though you have a big salary, is not easy when carrying out your duties, many people don't like it, especially bad employees. because his job is to monitor all financial activities.

The internal auditor audits only the entire accounts of the institution as being accounted by the accountants. There is no individual auditing. The internal auditor of that private college audits only what has been accounted by the cashiers and accountants.

 

[Suba]

The internal auditor audits only the entire accounts of the institution as being accounted by the accountants. There is no individual auditing. The internal auditor of that private college audits only what has been accounted by the cashiers and accountants.

True, internal auditors do not audit someone's personality but their positions related to finance, such as cashier, payroll department, recording costs and purchases, etc.

 

[Starmix]

True, internal auditors do not audit someone's personality but their positions related to finance, such as cashier, payroll department, recording costs and purchases, etc

You are so right, those you mentioned are the functions of an internal auditor. The internal auditor holds office in a silent room as what I have observed at thet private college. He keeps on checking reading and auditing.