We held a webinar on May 25, 2021, on how Ghanaian SMEs can prevent occupational fraud. Here is summary of the discussion.

  1. Ghanaian SMEs face increasing risk of occupational fraud because of our current business and economic environment.
  2. Occupational fraud is using one’s occupation to make personal gains through deliberate misuse or misapplication of the company’s resources.
  3. There are three types of fraud:
  • Theft–stealing assets from the business.
  • Misuse of company assets like company vehicles, computers, and office supplies for personal gain.
  • Financial Statement Fraud – manipulating the financial statements for financial gains. This fraud is usually carried out the management.
  1. Tips for preventing occupational fraud:
  • Do not let one employee approve transactions, hold the asset, and keep the keep the books of account.
  • Implement a hiring process that involves background and reference checks, criminal record checks. Also make leave mandatory for all staff.
  • Ensure that you implement key controls like approvals, verification, reconciliations, and supervision in your business.
  • You must also implement controls over your critical assets such as your bank account, cash from sales, petty cash, and inventory.
  1. Some questions we got during the webinar are:
  • How do I prevent fraud from external parties?
  • How do I manage the occurrence of fraud in the organization when the owner of the business and the senior staff approve transactions and hold assets?
  • What happens when a senior member of the business who is the sole signatory to the bank account?

Watch the full webinar here.

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