Tanzania: Study Reveals Most Effective Methods to Prevent Fraud
Introduction
A recent study has shed light on the most effective methods for preventing fraud in Tanzania, with significant implications for the government and organizations.
Most Effective Methods to Prevent Fraud
According to the study, the top-ranked method for preventing fraud is process control involving internal control review and improvement, cash reviews, inventory observation and inspection, and bank reconciliation. This is followed by communication towards staff, integrated fraud control, organizational policy, continuous monitoring, inspection tools and methods, and protection software/application respectively.
Recommendations
The study’s authors recommend that the government focus on improving methods such as integrated fraud control, organizational policy, continuous monitoring, inspection tools and methods, and protection software/application, which were ranked lower in terms of effectiveness.
The Importance of Fraud Prevention
Occupational fraud and abuse is a significant problem globally, with Tanzania being no exception. A report by the Association of Certified Fraud Examiners (ACFE) highlights the importance of effective internal controls and fraud prevention measures to mitigate the risk of fraud.
Previous Research
Previous research has emphasized the importance of process control, communication, and continuous monitoring in preventing fraud. For example, a study by Apostolou and Crumbley found that auditors’ responsibilities concerning fraud detection were crucial in preventing financial fraud.
Recommendations for the Government
The study’s authors recommend that the government take a proactive approach to prevent fraud by revisiting its performance on methods such as integrated fraud control, organizational policy, continuous monitoring, inspection tools and methods, and protection software/application. By doing so, the country can reduce the risk of fraud and promote economic growth.
References
- Alleyne VGP, Howard M (2005). An exploratory study of auditors’ responsibility for fraud detection in Barbados. Managerial Auditing Journal 1(4):1-16.
- Association of Certified Fraud Examiners (ACFE) (2018). Report to the Nations Global Study on Occupational Fraud and Abuse Government. New York: Association of Certified Fraud Examiners.
Note: The article has been rewritten in a media style, with a focus on summarizing the key findings and implications for Tanzania. References have been included at the end of the article.