|← Strategy Execution||Strategic Implementation Guidelines →|
A company’s growth is mostly assessed by the capacity to draw proficient and enthusiastic employees. Customers deduce a growing firm as steadfast and ready to please. If growth is not kept within the handling capacity of the firm it can spiral out of control hence building up momentum for its collapse. Growth can overtake the controls if the controls are loosened too much to be effective (Hartley, 2010). The growth may be fuelled by borrowed cash and without proper credit control, the growth will continue to occur despite the fact that it is happening on credit. For instance, lack of proper controls on foreign subsidiary led to the growth of Maytag’s Hoover Division and its downfall (Hartley, 2010).
The most common type of fraud on investment is the theft of cash and company investments. This is mostly done through forgery of cheques and bank redirecting money to personal credit cards. The employees may also pilfer money by buying goods and services for personal use using the company’s credit cards. Cash can also be stolen through the procurement division where certain suppliers are awarded tenders in exchange of the kickbacks at the expense of the company. The employees of a company may steal from the company by altering the uses of accounts of the company. This is done through the compensation of unsanctioned items or applying the same item multiple times for compensation (Bragg, 2011).
This type of fraud can be stopped if the right controls are put in place. These controls would be counterchecking cheques against the actual number sequence. Cheques should not be stored as separate sheets, rather as a scroll to follow the sequence. Impromptu checks for petty cash should be conducted. Supervision on approval of cash refund should be effected and tender awarding should be supervised and opened explicitly. The credit card passwords should be held by one person who should supervise any transactions done through them (Bragg, 2011).