tag:blogger.com,1999:blog-1117143362420450584.post605579795284938406..comments2009-09-03T09:14:51.085+10:00Tom McLeodhttp://www.blogger.com/profile/14251335392371547161noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1117143362420450584.post-59071911286829737132009-09-02T23:51:48.593+10:002009-09-02T23:51:48.593+10:00Hi Tom, interesting post! Being in North America, I hadn&#39;t heard of this scandal before.<br /><br />This is a great time to bring up the discussion on accounting controls, policies and procedures. For risk management purposes, I&#39;ve always felt it best to require two employees to make financial decisions and transactions (e.g. requiring consignors for cheques).<br /><br />Additionally, it is critically important to have a fraud-resistant environment within an organization. This is particularly true in finance and accounting departments. Employees should be trained in fraud detection and should be well aware of the consequences of fraudulent activity. <br /><br />Also, there should be a whistle-blowing protection system in place whereby employees that are suspicious of another employee&#39;s actions will remain anonymous and not be harassed by others for telling superiors.<br /><br />By creating a fraud-hostile environment, employees are a lot more likely to act against it rather than considering participating.<br /><br />Thanks!Jana Hardinghttp://blog.clearrisk.comnoreply@blogger.com