Fast-growing economic conditions, making things change fast too. Behavior, Character, Attitude and Behavior also begin to move. Regardless of one’s mental and spiritual condition, economic and technological change in particular greatly affects behavioral change and attitudes in work. This change is the basis for changes in professional structure within a company. They will look for talents that update information and technology updates. However, sustain companies in recruiting the best candidates will always look for those who have Honesty or Integrity Values. Integrity can be said to be a fixed price for a company’s life. A lot of evidence says that a company’s failure is more dominant due to failure in their own internal processes than market factors or competitors. Fraud is the impact of the loss of Integrity. Fraud has a direct impact on both the actors themselves and the company as a whole .
Character, Behavior, Attitudes and Employee Behavior boils down to a value called INTEGRITY. With even high competence, but low moral capacity, it is difficult for companies to compete. Like choice, you keep a stupid honest person or hire a clever smart person, certainly not an ideal choice. Integrity is a Characteristic while Capacity is Additional Property. Fraud certainly hurt himself and certainly hurt the company. Fraud is a deviant behavior that is done unscrupulous for his personal interests.
Fraud definitely gives financial loss to the company. Manipulation, Lapping, Embezzlement and others, obviously directly take the financial portion or potential financial risk of the company. Fraud deeply undermines the company’s financial profile, either short-term or long term. Financial Loss is a major issue of Fraud.
Tu Sooraj Main Saanjh Piyaji 1st January 2018
Once the fraud is revealed in public, then another risk is the level of public confidence to the company will be corrected. Especially with being an open company, then the value of the company is at stake from the value of Integrity. The alliance process will be hampered, the membership of an economic community will be rejected, and the consequences of higher credit score must be borne.
Yeh Hai Mohabbatein 1st January 2018
Fraud that has been rampant will bang corporate morale on hard rock. Fraud is not resolved well, bringing the atmosphere of work is not conducive. Mutual suspicion and interrogation between employees can occur at any time. Besides the value of selling employees even though they are not involved with Fraud, it will be questioned when they move to another company.
Increased Audit Costs
Fraud that has been rampant will increase operating costs, especially OPEX from the Audit Team. They need to conduct periodic and periodic investigations. Especially if fraud has occurred in a “congregation”, then the costs of investigation will be greater, because the greater time and energy to get data and facts.
Fraud is very much the focus of many companies. And internal control will always go hand in hand with good business processes. Fraud, the effect on yourself and your company is a parasite that must be eradicated as early as possible. Not only the Preventive or Corrective process but also need to be accompanied Detective process.