The best defense against fraud is to have preventive and detective internal controls that are in place and operating effectively.
- Internal Controls are processes, mechanisms, and procedures implemented by the University to ensure the integrity of financial information, promote accountability, and prevent fraud
- Preventive Controls attempt to deter or prevent undesirable events from occurring. They are proactive controls that help to prevent a loss. Examples of preventive controls are training, procedures, separation of duties, proper authorization (including defined authority limits), adequate documentation, and physical control over assets
- Detective Controls attempt to uncover fraudulent or improper transactions after the fact. Examples of detective controls are reviews, analyses, variance analyses, reconciliation, physical inventories and audits
By establishing an effective system of internal controls you can lower the risk of fraud. Everyone at UCLA is responsible for understanding their internal control, responsibilities, including but not limited to, implementation and ongoing performance in accordance with university policy and procedures.
See the Misuse of University Resources and Email/Internet Fraud pages to learn about common types of fraud and examples of internal controls a department should have in place to prevent and detect potential improper activity.
