Global Composite Model: A Plan to Detect and Prevent Fraud Worldwide

Entities throughout the world are devising models to detect and prevent fraud in the workplace. This CFE from the United Kingdom constructs a composite from three countries that can be adapted to any public or private entity. 

Governments, regulators, and commercial entities worldwide are considering the best practical measures for preventing fraud. Here I identify the common elements of some of these global models and establish a composite model that any entity large enough to segregate different business functions can use. Smaller organisations can adapt the model to suit individual circumstances.

Existing Models 

As a basis for this composite model, I have utilised some of the work which has taken place in the U.S., Australia, and the United Kingdom:

Both the COSO model and the Combined Code model were developed to address the subject of internal controls in a financial reporting environment. However, the framework for both of these models assumes that fraud is a business risk to be managed in the same way as any other business or financial risk. One can confirm this by examining the commentary supporting the five key points in each model. The Australian models, on the other hand, specifically address the subject of fraud prevention and control.