Executive Roadmap to Fraud Prevention and Internal Control: Creating a Culture of Compliance, 2nd Edition

CHAPTER 14

Training, Training, and More Training

EXECUTIVE SUMMARY

Training at all levels in an organization, from the CEO down the ranks, is an absolute requirement in preventing fraud and creating a culture of compliance. Training reinforces an entity's commitment to ethical conduct and compliance with company policies, as well as government laws and regulations. The training should encompass the code of conduct, the risk of fraud, the employees’ role in preventing fraud, and the company's strong commitment to being a good corporate citizen. There are many ways to deliver quality training; all of them must be considered in designing an effective company-wide training program. An organization's fraud investigators should be involved in providing fraud prevention training. They are the ones involved with fraud and fraud prevention on a daily basis and can provide insight and context to the problem. Managers are role models for their direct reports and are the first line of defense in detecting and preventing fraud. Appropriate training of managers can provide great benefits to an organization.

BUILDING FRAUD AWARENESS THROUGH TRAINING

Fraud prevention begins with training. Education and awareness of the fraud risk, the types of fraud an organization may face, the impact on a business, how employees’ lives are impacted by wrongful behavior, and what can be done to stop fraud are key elements in any fraud awareness and prevention program. Good companies recognize that fraud ...