Fraud at the boardroom table

There have been a number of articles lately highlighting the danger of employee fraud. Statistics indicate that it has been on the rise which is, perhaps no surprise given the tough economic climate and increasing pressures on family budgets.

"The business owners, whether shareholders in a company or partners in a partnership, may have the power to override any controls or systems put in place to protect the business assets or may simply bully those below them into not questioning suspicious activities. This can lead to a very damaging culture in an organisation wherein employees think that if the bosses are having something for nothing then it is alright for everyone else to have something," said Jeremy.

"Part of the problem may be that partners and shareholders may enter business together in a mood of optimism and mutual trust. Controls may not be considered necessary at the beginning as they try to build up the business. However as the business grows it becomes more difficult to know everything that is going on and cracks may open in the relationships between the partners.

"Ultimately the bosses should provide an example and set the tone for the organisation by ensuring procedures and controls are in place and not routinely overridden by those in charge. All this is not to say that there should be a snooping culture, but individuals, particularly those handling money or recording transactions, should not be left completely to their own devices without any anyone else showing an interest no matter how senior they are.