Controls over the misappropriation of assets 1379
I’m trying to think of a good control that could be designed specifically to mitigate the risk of Miss-appropriation of Assets - ie the risk that Investment assets / cash available to a Fund Managing Company might be fraudulently misappropriated.
Denis last edited by
Segregation of Duties
Ah, thanks Denis. I left out segregation of duties in my list. How could I??
Chhaava last edited by
One more thing, Bank Rec cannot be done by the person who records assets.
milan last edited by
Might be a little late, but some additional suggestions to enhance controls over misappropriation of assets by an Investment Management Company:
- Reconcile the custodian and investment manager reports periodically.
- Develop and adopt a formal Investment Policy. Many examples can be found on the internet by searching on the terms ‘Investment Policy’.
- Monitor investing activity and review the periodic investment performance reports.
Hope this helps,
Never too late, Milan. Thanks all.