Assignment Instructions Generally, fraud poses an incredible threat to organizations of all types and sizes, in all parts of the world. What is fundamental to understand Fraud Risk Management...

Characteristics of the organizations that are victimized by occupational fraud
Occupation fraud is a type of fraud which is committed by the organization’s employees. The characteristics of the organization that are victimized (Holtfreter 2005) by occupational fraud are:
· Asset Misappropriation: Where the asset owned by the company is no longer utilized co
ectly and they have misappropriated handled or used
· Bribery and co
uption: The employees are part of co
uption which has led to the
and damage of the organization
· Financial statement fraud: Financial statement is one of the material information which is used by the organization people and the people outside the organization to make a decision and in this case the fraud which might occur leads to a very bad impact on the economy
The other characteristic of occupational fraud is that this happens with an organization who are having less than 100 employees or more than 1000 employees as they are more prone to the fraud.
Methods of accessing occupational fraud risk
Accessing occupational fraud risk is very important because the risk has occu
ed and now the organization has to assess the risk to which the fraud has given rise this can be done using various methods by following certain steps which will help the organization to see what the risk is and how that can be mitigated.
The access is aimed to address the business vulnerabilities that have arisen because of the internal or external fraud conducted by the organization's employees.
Occupational fraud is conducted by the organization’s employees when the internal control of the organization is not good.
The steps to conducting a fraud risk assessment are:
· Identify the risk: The first and most important step is to identify the risk
· Quantify the risk: The next step is to quantify the risk which means identifying the impact the risk may cause, and if the impact is very high the risk will be of high priority and if not, it will be something which will be of low priority
· Respond to risks: The risks which have been identified now have to be mitigated and for this, the response which must be taken will be identified in this step
· Monitor and review the risk: After implementing that is responding to the risk the monitoring and reviewing of the risk starts which is done to make sure that the risk is mitigated and is not having any impact on the organization ‘s activities
· Report risk: After completing all the steps the risk must be reported to make sure that it is recorded and if the same risk arises in the future the risk can be tackled in a better manne
Means by which occupational frauds are detected
Occupational fraud is one kind of fraud which is conducted by the organization's employees, and this is done to benefit by damaging the company's reputation. There are various methods/means by which occupational frauds can be detected, some of which are:
· Internal Audit: Audit is one of the popular ways to detect any fraud, and with the help of an internal audit the organization which has been affected by the fraud can set up a team internally to identify what kind of fraud has been conducted and what is the risk which the company has to bear as a result of the fraud.
· External Audit: Many times, the internal audit is not effective because of the management being playing a part in the fraud and in this case the best way to detect an occupational fraud is by doing external audits regularly to see whether the company is having any risk of frauds or not
· Establishing a code of conduct: This is like a front-line defence that the organization can undertake to detect organizational fraud by setting the right code of conduct, this will help in setting the right goals which will make sure that employees report the frauds which they might find occu
ing in the organization
Though detecting occupational fraud is helpful and does make sense because it helps in taking the right action to see that the damage which can occur is not much, overall, the occupational frauds are the ones which damage the reputation of the company and therefore it is best to set up the first line of defense to make sure that the fraud does not occur at all.
Preventing occupational frauds
Occupational fraud is very common with the level of internal control that an organization has, and therefore it is very important to implement the strategies which help in preventing the frauds and at the same time mitigating the risk which might arise as a result of these frauds. Preventing occupational fraud is important because of the damage that fraud can have on organizations.
The strategies that...