While conducting the Audit, Secretarial Auditor found that by forged signature, accountant had transferred huge amount in dummy account. There was a big financial scam in the organization. Reporting on fraud, Management

The management should be pro-active in fraud related matter. A fraud is usually not detected until and unless it is unearthed. A Fraud Risk Management Policy should be incorporated, aligned to its internal control and risk management. The Fraud Risk Management Policy will help to strengthen the existing anti-fraud controls by raising the awareness across the company and promote an open and transparent communication culture. It would also promote zero tolerance to fraud/misconduct and encourage employees to report suspicious cases of fraud/misconduct. The policy would spread awareness amongst employees and educate them on risks faced by the company. The major aspects to be included in Fraud Risk Management Policy are - Defining fraud: This shall cover activities which the company would consider as fraudulent. Defining Role & responsibilities: The policy may define the responsibilities of the officers who shall be involved in effective prevention, detection, monitoring & investigation of fraud. The company may also consider constituting a committee or operational structure that shall ensure an effective implementation of anti-fraud strategy of the company. This shall ensure effective investigation in fraud cases and prompt as well as accurate reporting of fraud cases to appropriate regulatory and law enforcement authorities. Communication channel: Encourage employees to report suspicious cases of fraud/misconduct. Any person with knowledge of suspected or confirmed incident of fraud/misconduct must report the case immediately through effective and efficient communication channel or mechanism. Disciplinary action: After due investigations disciplinary action against the fraudster may be considered as per the company's policy. Reviewing the policy: The employees should educate their team members on the importance of complying with Company's policies & procedures and identifying/reporting of suspicious activity, where a situation arises. Based on the developments, the policy should be reviewed on periodical basis.