How Do You Detect Signs Of Fraud In The Purchasing Department?
Detecting fraud can be difficult, especially when trusted employees are suspected. Watching for fraud is made easier with the implementation of strict operational controls. Educating employees is also effective in reducing fraud. The purchasing department of any business is subject to fraudulent behavior. Step 1 Watch for unusual behavior among your employees. Stress or illness can often precipitate criminal behavior. Detect fraud by watching for financial irregularities in your employees personal lives. Deep debt and expensive habits often are red flags when searching for fraud. Step 2 Watch for excessive turnover among vendors. Switching vendors more frequently then expected in your industry often provides a red flag that fraud may be occurring in the purchasing department. Ask your employees why vendors were replaced; if you suspect fraud contact the vendors personally and ask about their experience with your company. Step 3 Suspect fraud if purchase orders are consistently missing,
Related Questions
- Who should I contact in the Department of Purchasing and Supply Management to find out information concerning current contracts such as the expiration date, incumbent vendor or contract administrator?
- How Do You Detect Signs Of Fraud In Payroll In A Small Company?
- How Do You Detect Signs Of Fraud In The Purchasing Department?
