Fraud and theft: Prevention and detection of fraud
The traders staff at management and supervisory level have the greatest opportunityto arrange for the improper removal of goods and to conceal the loss (either for corporateor personal gain). There can be no comprehensive list of possibilities but suchconcealment may be attempted by the following means.
- Excess and unrecorded production.
- Fictitious removals for purposes that do not require duty payment (for example, inter- premises removals or removals for exportation).
- Falsification of accounts for goods received;
- Double recording of duty-paid clearances (eg duplicated notations of duty payments, possibly confused by accidental transposition of figures).
- Switching of consignments (with mis-picking being used as an alibi if the switch is detected).
The trader is responsible for taking the action necessary to safeguard the revenue ontobacco products in registered premises. The main emphasis of official action must be toensure that the traders controls are fully effective. Although your audit planshould identify the checks needed to monitor the traders own controls, the need forvigilance and additional controls to discover and prevent fraud should always be borne inmind. The checks and controls will, of course, include those concerning computerisedaccounts.
It is good practice to maintain an incident book for each set of registered premises andrecord all trader omissions and irregularities together with a record of the action taken.