Reconcile records to make sure that two sets of records (usually the balances of two 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
Lack of record and account reconciliation may led 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 to put this countermeasure in place
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 measure this countermeasure's effectiveness
Measure the effectiveness of this countermeasure by applying the following methods:
- 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: