Fraud And Falsification Of Fraud

How surprisingly, most of these alteration cases share common patterns and indicators that if recognized and properly managed could be detected quickly.When talking about fraud and irregularities, it is important to distinguish between two major types: the first is corruption, where, for example, the supplier returns (usually in cash) to the staff of the entity, a percentage of the total value of the purchase; the second, occurs when there is alteration or falsification of documentation or backup information as in the case of ABC Co

Making this distinction is necessary since the acts of corruption are much more difficult to detect and more costly than frauds caused by falsification or alteration of documentation (although the latter occur more

They give security to the organization that the supplier is complying with all the legal requirements at the moment of operating with it, normally they validate that the suppliers comply with all their fiscal and social responsibilities, and prevent the company from being jointly and severally affected by a contingency. Additionally, there are procedures that are usually carried out in the internal audit departments in order to prevent and detect irregularities: Set in writing responsibilities and functions of the different officials that make up the sector. They must provide compliance with the responsibilities and obligations they are assuming. This allows that, when assigning responsibilities, they can be clearly

Check the existence of suppliers that register and where purchases are made for significant amounts and then cease to operate, this type of transactions in some cases are made to defraud.In conclusion, it is essential that organizations have an adequate structure of both preventive and detective control that allows them to lower their level of risk and exposure to fraud or error. There are numerous systems and controls that can be carried out. The opportunity, nature, and scope of each one will depend on the risks involved in each case and the control policies that the company establishes a company or the