NCJ Number
127526
Date Published
1989
Length
32 pages
Annotation
This booklet provides guidance for companies interested in assessing their exposure to loss through white collar crimes, reviews the objectives of internal control, recommends specific control procedures, and discusses the role of management in creating an environment in which such control will be effective.
Abstract
White collar crime can occur wherever there is a conjunction between opportunity and motivation; the internal controls that a company establishes must be affordable in terms of reducing loss while allowing company operations to continue as efficiently as possible. When assessing exposure to loss, company management must consider vulnerable assets, fraud techniques, collusion and concealment, employees who steal, and the effect of computers. The general objectives of internal control fall into the categories of authorization, recording, safeguarding, and accountability. Specific objectives and control procedures are discussed in terms of various company functions: sales, purchasing, payroll, inventory, plant and equipment, cash receipts, and investments among others. Organization and personnel practices, information system, internal audits, and management conduct all play important roles in creating the proper control environment. 3 tables