Reconcile records to make sure that two sets of records (usually the balances of 2 accounts) match. Reconciling records and accounts can detect if something is different from what is standard, normal, or expected, which may indicate fraud.
Why this countermeasure matters
A lack of record and account reconciliation may lead to:
- fraudsters feeling more confident their actions will not be detected
- high levels of non-compliance or errors due to inconsistent and unclear processes, rules and decision-making
- less transparency over the actions and decisions of staff and third parties
- fraud or corrupt activity going unnoticed or unchallenged.
How you might apply this countermeasure
Some ways to implement this countermeasure include reconciling records by comparing:
- travel approvals each month with the trips booked using a travel vendor
- credit card expenses with receipts
- overtime budgets against spending
- assets ordered versus assets received.
How to check if your countermeasures are effective
Here are some ways to measure the effectiveness of this type of countermeasure:
- confirm that the reconciliation is segregated from the processing. Make sure that one staff member cannot process and reconcile the same activity
- review who has access to complete reconciliations
- walk through the process with a staff member while they complete a reconciliation
- confirm a consistent reconciliation process exists
- confirm that records cannot be manipulated
- review the process to determine if it would identify different methods of fraud
- conduct interviews, workshops or surveys with staff who complete reconciliations to measure their understanding and thoughts about fraud control policies
- check if and how reconciliation results are reported.
This type of countermeasure is supported by: