MANAGEMENT RESPONSIBILITY IN FRAUD DETECTION

MANAGEMENT RESPONSIBILITY IN FRAUD DETECTION

ABSTRACT

Fraud involves willful misrepresentation, the deliberate concealment of a material fact5 for the purpose of inducing another person to do something unethical or the failure to disclose of a material fact.
Therefore any material alteration, erasure, removal which is done to deserve and to cheat an unsuspecting victim, constitutes fraud.
Against this background, it is easy to observe that frauds are umbrella crime concept covering a wide range of criminal behaviour. Most frauds are rooted in the destroy by some individuals to get to confer some advantages
(mainly financial) which the fraudster does not desire. No wonder the federal government of Nigeria has declared this cancer worm a national issue and has constituted anti-corruption commission to deal with it.

CHAPTER ONE

BACKGROUND OF THE STUDY
The management of business risk is one of the important issues facing business. Any risk may be a serious threat to an organizations well being. Fraud is a real threat to the financial health of an organization and to its image and reputation. Therefore management has to understand the potential consequences of fraud on their business and then the need to reduce risk through developing an anti-fraud culture across their business by introducing appropriate policies, controls and procedures on how to deal with fraud in an organization.
Fraud can be described as cancerous premeditated action of a person or group with the intention of altering the truth of fact for selfish personal monetary gain. In involves the use of decent and trick and sometimes highly intelligent cunning and know how. The action usually takes the form of forgery, falsification of documents and forgery of signature in and out right theft.
Fraud also involves will fill misrepresentation, the deliberate concealment of a material fact for the purpose of inducing another person to do something unethical or the failure to do disclose a material fact. Therefore any material alteration, whether by addition, insertion obliteration, erasure, removal which is done to deceive and cheat an unsuspecting victim, constitutes a fraud. Against this background, it is easy to observe that fraud is an umbrella crime concept covering a wide range of criminal behaviour. Most frauds are routed in the desire by some individuals to get rich quick, while virtually all frauds are perpetrated with intent to confer some advantage mainly financially which the fraudster does not desire.
The fraudster government of Nigeria seems that this cancer worm (fraud) has increased constituted anti-corruption commission to deal with it.

1.2 STATEMENT OF PROBLEM
For the past years, the risk of fraud has been a barrier to all business both small and medium size business.
Is spite of all attempts been made by the fraud advisory panel that was established 1998, unfortunately such efforts have not been fruitful due to lack of internal controls and resources internal auditors or human resource departments which can help during the course of their other work in the fight against fraud.
The risk of fraud in Bergel Cosmetics Industry has increased due to the fact that new employees are not provided with the business fraud policy statement and prevention and detection matters are not included in the induction programmes and continuous carrier training.
Besides this has led to poor turnover as invest fear of being defrauded.

MANAGEMENT RESPONSIBILITY IN FRAUD DETECTION