Question

Mr. Fatin is experienced store keeper in Oman Flour LLC. He is responsible for purchase of raw material for the production. He purchases raw material from Mr. Gaffer who is his relative. Mr. Navab who is the owner of Oman Flour LLC , Mr. Navab and Mr. Fatin both are good friends. With the help of Mr. Junaid who is accountant, Mr Fatin did some manipulation in the bill of Mr. Gaffer. Mr. Navab did some favourable changes in book of account with the help of Mr. Juinaid. Mr. Juained help both of them for no benefit.
You are required to analyse the given situation, state your opinion that which type of fraud is occurred by Mr. Fatin, Mr. Navab, and Mr. Juiand. Also give the corrective actions to detect and prevent it.

Answer 1

Fraud in this situation has occured due to Collaboration between employees. It is due to the opportunity available to them made this type of Fraud.

This types of Frauds can be detected & prevented by taking the following corrective actions :

• Segregation of duties between the employees. Like Mr. Fatin should not have the right to the next process of the purchases
• Rotation of Employees to be made inoder to detect the frauds
• Authorization persoonel needs to be set & be held responsible for any type of frauds
• Employee interaction program to be set in order to remove the negative thoughts from the employees