Fraud Prevention Methods Fall Short in Tanzanian Public Institutions
DAR ES SALAAM, TANZANIA - A recent study has revealed that many fraud prevention methods used by public institutions in Tanzania are ineffective.
Ineffective Methods
The study found that process control involving internal control review and improvement, cash reviews, inventory observation and inspection, and bank reconciliation were ranked as the most effective methods in preventing and detecting fraud. However, other methods such as:
- Inspection tools and methods
- Protection software/application
- Reference checks on employees
were deemed ineffective.
Advanced Techniques Not Utilized
According to the study, public institutions in Tanzania are not utilizing advanced fraud prevention techniques such as:
- Discovery sampling
- Data mining
- Digital analysis
- Use of forensic accountants/auditors
- Surveillance of electronic correspondences
These methods were found to be effective in preventing and detecting fraud in other countries.
Recommendations
The study’s findings highlight the need for a more effective approach to fraud prevention and detection. To address this, we recommend:
- Improving performance on integrated fraud control, organizational policy, continuous monitoring, inspection tools and methods, and protection software/application.
- Encouraging the use of advanced fraud prevention techniques such as discovery sampling, data mining, digital analysis, use of forensic accountants/auditors, and surveillance of electronic correspondences.
- Investing more in the use of forensic accountants and auditors.
Conclusion
Fraud prevention is a critical issue for public institutions in Tanzania. The study’s findings highlight the need for a more effective approach to fraud prevention and detection. By implementing these recommendations, public institutions can reduce the risk of fraud and improve transparency and accountability.
Methodology
The study surveyed 441 respondents from public institutions in Tanzania and analyzed the data using statistical methods. The results showed that process control involving internal control review and improvement, cash reviews, inventory observation and inspection, and bank reconciliation were ranked as the top four effective methods in preventing and detecting fraud.
References
[Author’s name], [Year of publication]