Bon Bon 12: The importance of automated systems for fraud detection in businesses

NWU Business School

Mr Pabalelo MasThe importance of using automated systems for fraud detectionhisi is a Business Intelligence Analyst for a mining company in Mpumalanga. He analyses day-to-day data to extract valuable data which can be useful for decision making in the finance department. He processes income statements which runs on a monthly basis as a report, with no manual calculations required. For stock control, this company uses automated stock sheets for reporting that runs on a daily basis to monitor stock, using tables and graphs to display the data. The experience he has gained, and networking he has done, allowed for possibilities of using his skills and technological tools to detect fraud in especially stock control. These fraudulent activities can then be immediately reported, using triggers, which would then be emailed to the relevant personnel, informing them on where the fraud is committed in order to start with an investigation process. The interviewee stressed the importance of working on a computerised system when doing accounting. This is important as it will save time and it will also contribute to pick up fraudulent activities on time. If businesses are not aware on online systems, there could be mistakes and this will have a major implication with SARS. Should these not be picked up, it could lead to forensic investigations and auditors might detect irregularities with far reaching consequences for a business. Business owners should be hands-on in their systems and should always consult with someone who has experience with stock controls and auditing of books.