Invalid Cash Transaction System Development – Fraud encompasses a wide range of illicit practices and illegal acts involving intentional deception or misrepresentation. The Institute of Internal Auditors’ International Professional Practices Framework (IPPF) defines fraud as: “… any illegal act characterized by deceit, concealment, or violation of trust. These acts are not dependent upon the threat of violence or physical force. Frauds are perpetrated by parties and organizations to obtain money, property, or services; to avoid payment or loss of services; or to secure personal or business advantage.”

Fraud impacts organizations in several areas including financial, operational, and psychological. While the monetary loss owing to fraud is significant, the full impact of fraud on an organization can be staggering. The losses to reputation, goodwill, and customer relations can be devastating. As fraud can be perpetrated by any employee within an organization or by those from the outside, it is important to have an effective fraud management program in place to safeguard your organization’s assets and reputation.

The major method usually utilized to detect fraud in financial institutions is auditing. Auditing is the examination, by an independent accountant, of the financial data, accounting records, business documents, and other pertinent documents of an organization in order to attest to the reasonableness of its financial statements. Businesses and not-for-profit engage certified public accountants (CPAs) to perform audit examinations. Large private and public enterprises sometimes also maintain an internal audit staff to conduct audit like examinations, which often are as much concerned with operating efficiency and managerial effectiveness as with the accuracy of the accounting data. Bank requires the auditor to report any differences, particularly any ineligible expenditure against which the Bank may have disbursed, recommending actions necessary to avoid recurrences. The audit of the statement of expenditures should be included as a part of the overall audit of the project. However, the Bank requires that particular attention be paid to the internal control systems and the verification of documents relating to expenditures, not only to ascertain proper financial accountability, but also that expenditures are eligible for inclusion in the project. The Bank requires the audit of its accounts to detect fraud. To detect fraud, there is need to apply specialized software to monitor transactions that exceed set limits and that contravenes the policy of the bank

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