Research Paper on:
Detecting Fraud and an Internal Auditor's Role

Unformatted Sample Text from the Research Paper:
is on the rise (David, 1992). And while consumer fraud is a problem as it concerns vendors and ordinarily consumers, it is an increasing problem in respect to employees.  In terms of fraud prevention, Rodgers (1998) recommends segregation of duties, control over blank checks, scrutiny of facsimile signatures, and documentation for all transactions and journal entries, as some  things that can be done to resolve the problem. A good plan of action to prevent fraud involves a myriad of procedures, inclusive of what is described  above, but what is really important is something that is done even before new hires are permitted to work with money or accounts. That is, every employees character should be  scrutinized. Nadler (2002) says that of the four Cs of credit which are character, capacity, conditions, and collateral, are important, but most lenders agree that character is the  most important part of the equation. If there is a deficiency in character, no amount of controls can prevent that person from committing fraud (2002). In addition to being careful  about loan applications, employees should receive the same degree of attention when entering the institution. That said, assuming a bank or other business takes great pains to hire reliable individuals  in important financial roles, what can be done to make sure that fraud does not occur? First, an internal auditor is a firms most important asset in respect to fraud  prevention. It is the job of the internal auditor to make sure that signals of fraud are caught before anyone has a chance to get away with a crime. The  insurance company internal auditor, for example, is usually in the best position to detect, deter or prevent fraud that might be committed by an employee (Hillison, Pacini,