What's Your Fraud IQ? This Month: Employee Handbooks and Policies
[ILLUSTRATION OMITTED] Effective policies are a cornerstone of an effective anti-fraud program. While not a cure-all, an employee handbook can help reduce the risk of fraud because it consolidates all organizational policies, providing staff members with a single point of reference for guidelines and expected procedures. Additionally, several specific policies can help greatly in establishing a culture of fraud prevention. Do you know what to include in the employee handbook to help reduce the risk of fraud? How ready are you to help management set a tone of ethics and transparency, rather than just creating a book that sits on the shelf? Take this quiz to find out. 1. The foundation of the a. The helpline reporting organization's anti-fraud program mechanism. is: b. The organization's mission statement. c. The employee training program. d. Segregation of duties. 2. Which of the following is NOT a a. Explicitly state that unethical best practice when drafting an conduct will not be tolerated. employee handbook? b. Include a statement for employees to sign acknowledging they have received, read, and agree to comply with the handbook. c. Avoid using the word fraud in favor of softer words such as noncompliance and dishonesty. d. List the potential penalties for employee misconduct but include a disclaimer providing management discretion depending on the specific infraction. 3. Elm Co., a privately held a. Whistleblowers will be provided medical device manufacturer, is strict confidentiality; unless based in the United States but has confidentiality is waived, no operations throughout Europe and identifying information will be is considering expanding into disclosed under any circumstances. several countries in the Asia- Pacific region. Management is b. Protection against retaliation reviewing the company employee does not protect the whistleblower handbook to ensure its policies from being subject to disciplinary are appropriate given the growing actions for confirmed personal global nature of its workforce. As wrongdoing. part of this, management wants to add a formal whistleblower policy c. An employee who intentionally to its previous reporting policy. submits a false report of Which of the following clauses wrongdoing will be subject to should NOT be included in the disciplinary action. whistleblower policy? d. An employee with knowledge of, or a legitimate concern about, illegal, unethical, or fraudulent activity has a responsibility to report the matter to management. 4. Part of an effective anti- a. The policy should be informal fraud program is an open-door and not included in the company policy that facilitates open lines handbook so that managers can of communication and feedback for exercise their discretion in how employees who wish to discuss it is applied. questions or concerns. Which of the following is a best practice b. The policy should restrict the regarding an open-door policy? taking of concerns to the employee's immediate supervisor and those directly in the reporting line above him or her. …