1. The primary approach of detecting fraud is anonymous tips and complaints. An organization like business entity should guide employees to provide useful information and to provide various ways and methods for individuals to contribute such kind of information. On the other hand, when the organization received the information provided, it should have an effective and efficient way to collect and process these complaints, dissatisfaction and information.
2. One of the important thing in fraud investigation is timing. When perpetrators find their circumstance has been compromised by somebody who learned about the misdeeds, the evidence would be destroyed and deleted immediately.
3. Nowadays, almost every organization use computer to deal with different issues everyday, and at the same time computer files and hard drives are at equal risk for corruption and deletion if the organization do not have an effective way to preserving these documents and data in a timely fashion. Therefore, to establish a reliable and secure backups of the drives creates a secondary plan in the event files are deleted or computer drives are deleted.
4. It is important to have an initial discussion at the beginning of an investigation into a potential fraud matter identifying different investigative options. To manage a client’s expectation are very necessary as well. Also, the sense of urgency should be put on two initial areas: preserving critical potential evidence and securing assets, bank accounts, investments, and other means for restitution.
5. To involve human resources personnel within the victim organization is equally important to counsel. In details, targets of investigations should be subject to employment policies and procedures of the victim organization. Targets of inquiries and fraud investigations are often placed on paid administrative leave pending the outcome of the investigation, which need to preserve both the integrity of the individual and the integrity of the investigation.
6. In every fraud investigation, legal counsel also plays a very significant. No privilege exists between a client and an accountant, or a client and a fraud investigator. To some extent, all communications should be directly to counsel, and all work performed should be clearly marked confidential and attorney client privileged, in order to preserve the privilege between the client and counsel.