Occupational Fraud Causes Organizations To Lose Essay Example

Introduction

According to a study conducted by the Association of fraud examiners in 2010, approximately 5% of organizations worldwide experience revenue loss due to fraudulent activities (Bierstaker, Brody, & Pacini, 2006). Fraudulent activities, including money laundering and inventory theft, are sometimes carried out by employees. In the case of Walmart, fraud is often associated with overnight employee theft. This article will discuss measures that can be implemented to establish an inventory control system as part of an organization's anti-fraud program.

Initially, I will establish an independent audit committee that is separate from the managerial team. The committee should be informed about the theft of employees during the night and the actions taken by top management to supervise and reduce this risk. These committees will regularly assess and keep track of the outcomes of yearly audits, as well as oversee the in