University Internal Audit

University of Massachusetts > Internal Audit > Red Flags

There are certain warning signs that managers and individuals with supervisory responsibilities should be aware of.

• Marked Personality Changes in Employees
• Financial Pressures on Employees
• Employee Living Beyond His/Her Means
• Employee Having Outside Business Interests
• Poor Internal Controls
• Rising Department Expenses
• Too Much Control in Key Employees
• Lax Management
• Failure to Pre-Screen Employees

While the aformentioned traits do not guarantee that white-collar crime exists in your department, they do indicate a higher likelihood of white-collar crime.  Therefore, management should be alert to the possibility of fraudulent activities.  If you have reasonable concern regarding possible fraud, Internal Audit should be contacted immediately.

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