Loss Prevention Policies Assignment Example | Topics and Well Written Essays - 1500 words - 1

Loss Prevention Policies - Assignment Example Fraud continues to increase alarmingly with each passing moment recording a new or even more sophisticated form of fraud. The situation is made worse by an increasing adoption of information technology that networks and connects the information infrastructure in businesses. Hard economic times are also tempting employees to engage in fraud. This paper will review the benefits of a comprehensive fraud control program and give a conclusion at the end. Fraud is a big problem even for large established global corporations; consider the case of dell Computer Corporation. In 2007, it had to redo its financial reports between 2003 and 2006 due to a deliberate manipulation of figures to meet quarterly budgetary targets. John Rigas, former chairman and founder of Adelphi Communications and his son Timothy who served as the CFO (Chief financial Officer) at Delphi were convicted for massive fraud in 2007 (Stanek, 2007). This illustrates the extent of fraud in organizations where even the senior leaders who are supposed to be role models actually initiate and commit heinous acts of corporate fraud. However, a comprehensive fraud monitoring system can come in handy to help detect and therefore help an organization reduce its risk to fraud. Comprehensive fraud monitoring involves the use of technology that incorporates forensic techniques to analyze data and information paths regularly to detect anomalies, to detect fraudulent acts while the re is still time to stop or mitigate the fraud. An effective fraud monitoring system is difficult to achieve by using the existing requirements and regulations necessitating the need for a comprehensive fraud monitoring system especially where senior management can be involved in fraud. A comprehensive fraud monitoring system continuously and constantly monitors happenings in a company’s financial system tracing the movement of cash, which can be used to trace back or detect potential fraud. A