The Transition of Employee Fraud within an Organisation
The Extended Reward System
The table below illustrates how fraud develops in an organisation without effective controls and proper organisation culture in place. The organisation that does not set boundaries effectively exposes itself to actions by employees that may threaten the entire business.
Basic
Fringe Benefit
Perk
Fiddle
Fraud
Salary & wages
Company car, expenses payments etc
Nicer office; use of phone and photocopier at work for personal reasons; leave early on Friday etc
Padding expense accounts; stock shrinkage; shortchanging customers etc
Significant stealing of funds, property or services; corruption; fraudulent financial reporting etc
Official
Official,
or unofficial but accepted
Unofficial and unacceptable, but some may be tacitly accepted within limits as part of cost of doing business
Unofficial and unacceptable
Legal
Illegal
Helps business
Threatens business
Disclaimer: The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
