IDEAS home Printed from https://ideas.repec.org/a/nwe/eajour/y2012i2p107-112.html
   My bibliography  Save this article

The Role of the Human Resource Department in Fraud Prevention

Author

Listed:
  • Miroslava Peicheva

    () (University of National and World Economy, Sofia, Bulgaria)

Abstract

The objective of this article is to provide arguments in support of the thesis that the Human Resource Department plays a key role in fraud prevention. To achieve this objective this article has the following layout. First, the article presents statistics that expose the increase of fraud in companies and the losses that they bring. Second, the article makes an analysis of the definitions of fraud and types of fraud. Third, the article presents specific cases that expose the shortcomings in the work of the Human Resource Department that create conditions for fraud. Fourth, drawing on examples and statistical information about the most common frauds in companies, the article proposes three roles of the Human Resource Department with regard to fraud prevention. These are the roles of an “architect”, “observer and analyst” and “distributor of knowledge”. The role of an “architect” involves the introduction of rules and procedures in the Human Resource Department, related to internal controls to prevent the creation of an environment that fosters fraud. The role of an “observer and analyst” is connected with establishing a system for monitoring and analyzing changes in employee behavior and the relationships between staff members. The role of a “knowledge distributor” involves carrying out training for employees and managers regarding the organization’s policy on fraud prevention. Fifth, the article offers conclusions and recommendations pertaining to the roles of the Human Resource Department in fraud prevention.

Suggested Citation

  • Miroslava Peicheva, 2012. "The Role of the Human Resource Department in Fraud Prevention," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 107-112, April.
  • Handle: RePEc:nwe:eajour:y:2012:i:2:p:107-112
    as

    Download full text from publisher

    File URL: http://www.unwe.bg/uploads/Alternatives/Article08_02.2012.pdf
    Download Restriction: no

    More about this item

    Keywords

    fraud; insider behavior; roles of the Human Resource;

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nwe:eajour:y:2012:i:2:p:107-112. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vanya Lazarova). General contact details of provider: http://edirc.repec.org/data/unweebg.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.