Over the past several years, occupational or employee fraud cases have been in the headlines. Many companies, big and small lose millions of dollars due to occupational fraud. Check tampering, improper payroll transactions, financial statements altering, cash theft, skimming payments from the register, stealing products from the warehouse, and the like fall under this category. Internal in nature, most occupational fraud is motivated by financial pressures like huge debts, medical problems, and other financial difficulties or if they feel that they are not well-compensated.
Now, for every businessman, protecting your assets from fraud should be one of your main concerns. Unless of course, you want to lose a HUGE amount of money. Although it is not feasible to eliminate every possible occurrence, fraud can be prevented. One of the most effective ways to do it is to hire a Davao internal auditing expert.
Internal auditors, in general, play a big role in fraud detection and prevention through monitoring employees and their behavior, as well as the financial statements of the company.
In implementing decisions and making judgement internal auditors must be fair and unbiased. They must not be influenced by anybody in the organization. And things like these are unlikely to happen when you have a reliable and trustworthy internal audit department.
It is also recommended to consider hiring the services of an outside consultant to work hand in hand with your own audit department. There are a lot of auditing firms in Davao City that offers a wide range of services including internal auditing, external auditing, etc. Hiring from an outside consultant’s service is the ideal solution to have execute fair judgement since he or she doesn’t have any preconceived notions about the company employees. This way, there will be no biases whatsoever.
Below are some of the roles and responsibilities of internal auditors:
Internal auditor’s roles are very crucial. That is why they need to be well-trained and knowledgeable to be able to carry out their responsibilities and perform their functions effectively.
It is very important for a company, not only in Davao City to have its own internal auditing department. However, the trend nowadays is to outsource the task to an auditing firm. The driving force of the many companies to outsource internal auditing function is because of the many benefits outsourcing provide. Below is a list of the many benefits when you outsource your internal auditing tasks:
According to the Association of Certified Fraud Examiners (ACFE), small businesses are more likely to become victims of this kind of crime than the larger ones because. They are more vulnerable to deception and abuse and are likely to suffer much higher losses because they have fewer employees, which means they tend to have to have less segregation among duties as well as fewer internal auditing controls. In addition, fewer employees tend to have a closer employer-employee relationship that they might be less suspicious, making employees more susceptible to fraudulent activity.
In a nutshell, internal auditing greatly helps every business or organization from occupational fraud and thus help it to grow and improve. Should you need internal auditing services, you can check out Davao City’s list of auditing firms and choose the one that suits your needs.