White Nelson Diehl Evans CPAs
Make a Payment Client Log in
Carlsbad, CA
760-729-2343 info@wndecpa.com
Irvine, CA
714-978-1300 info@wndecpa.com
Menu
  • Our Firm
    • Close
    • Our Team
    • Our Impact on the Community
  • Services
    • Close
    • Accounting & Financial
    • Advisory
    • Audit
    • ERISA Audits
    • ESOP
    • Estate & Trust Planning
    • Tax Planning Preparation
    • Tax Services
  • Industries
    • Close
      • Aging Services & CCRC
      • Business Services
      • Construction & Contracting
      • Distribution (Wholesale)
      • Estate & Trust Services
      • Employee Stock Option Plans, ESOP
      • Food & Beverage
      • Franchises
      • Government
      • Healthcare & Medical
      • Leasing & Finance
      • Manufacturing
      • Nonprofit
      • Professional Services
      • Real Estate
      • Retail
      • Retail Fuel Outlets
      • Staffing Agencies
      • Technology
      • Transportation
  • Resources
    • Close
    • Blog
    • E-Guides
  • Locations
  • Careers
    • Close
    • Careers at WNDE
    • Current Opportunities
    • The WNDE Advantage
    • Benefits and Programs
    • Experienced Professionals
    • Students
      • Close
      • Summer Leadership Program
      • Internships
  • Contact Us
  • Make a Payment
  • Client Log in
White Nelson Diehl Evans CPAs
Menu
  • Our Firm
    • Close
    • Our Team
    • Our Impact on the Community
  • Services
    • Close
    • Accounting & Financial
    • Advisory
    • Audit
    • ERISA Audits
    • ESOP
    • Estate & Trust Planning
    • Tax Planning Preparation
    • Tax Services
  • Industries
    • Close
      • Aging Services & CCRC
      • Business Services
      • Construction & Contracting
      • Distribution (Wholesale)
      • Estate & Trust Services
      • Employee Stock Option Plans, ESOP
      • Food & Beverage
      • Franchises
      • Government
      • Healthcare & Medical
      • Leasing & Finance
      • Manufacturing
      • Nonprofit
      • Professional Services
      • Real Estate
      • Retail
      • Retail Fuel Outlets
      • Staffing Agencies
      • Technology
      • Transportation
  • Resources
    • Close
    • Blog
    • E-Guides
  • Locations
  • Careers
    • Close
    • Careers at WNDE
    • Current Opportunities
    • The WNDE Advantage
    • Benefits and Programs
    • Experienced Professionals
    • Students
      • Close
      • Summer Leadership Program
      • Internships
  • Contact Us
  • Make a Payment
  • Client Log in

Developing a Fraud Hotline that Employees Can Trust

Blog

The following article is part 3 in a series on protecting your business from fraud, authored by Bill Morgan, CPA, principal at WNDE.
What is an Employee Fraud “Hotline”?
Employee tip hotlines are one of the most effective tools that organizations possess for detecting and preventing fraud. Because tip hotlines encourage and facilitate anonymous reporting, they are a proven fraud deterrent that can be implemented at a reasonable cost. Tip hotlines can be administered in-house, or “outsourced” to an independent provider. Tips can be accepted by phone, fax, U.S. mail, email and web-based systems. Tips must be anonymous and confidential; if there is any risk that an employee’s identity will become known, employees will not support the arrangement.
Noted below are some features of a typical “outsourced” hotline:

  • Tip lines are usually available 365 days per year, 7 days per week and 24 hours per day.
  • The outside hotline provider will normally provide “case management” services, to track the case from inception to resolution.
  • Many hotline providers make multilingual services available.
  • If a matter results in litigation and/or prosecution, the employer can outsource this function, or handle it in-house.

Keys to Developing a Hotline that Employees Can Trust
Noted below are certain keys to developing a hotline that employees can trust.
Education and Training: If employees do not understand how the hotline system works, then they are unlikely to make use of the hotline. Thus, employers (or an outside hotline provider) should train employees on the mechanics of the system and how the hotline reporting program works.
Ongoing Communication: To keep the program in the minds of employees, management should send periodic messages to employees about current developments in company ethics policies, the success of the program, changes in procedures that have been made as a result of information received on the hotline, etc.
No Management Involvement in Hotline: If employees are reporting issues with company management, they may be hesitant to use a hotline where employees report directly to company officials or other company employees. In this situation, it is usually most effective to use a third-party company to administer the hotline service.
Quick Responses to Employee Tips: If an employee has witnessed a fraud or some type of wrongdoing and reports this through a hotline, this can be a very emotional experience. The whistle blower might even be a victim, or might be at risk by coming forward. The concerns of the employee should be immediately addressed in a professional manner, and procedures should be put in place so that they are protected from retaliation.
If you have any questions about ways you can protect your business from fraud, contact your WNDE audit or tax services partner.



Categories
  • Blog
  • News
Recent Posts:
  • Tips for Budgeting

    10 Tips for Better Budgeting…

    14 Oct
  • IRS Check

    Still Waiting for the IRS to Cash Your Check?

    14 Oct
  • Unemployment Benefits

    Do You Know Unemployment Benefits Are Taxable?

    14 Oct
  • 1099-NEC

    Ready for the 1099-NEC?

    14 Oct
  • Old Tax Records

    Thinking of Dumping Old Tax Records?

    16 Sep

The 90-year legacy of White Nelson Diehl Evans
is a tribute to the confidence our clients have in us.

White Nelson Diehl Evans LLP.
2875 Michelle Drive, Suite 300
Irvine, California 92606
TEL 714-978-1300

Explore:

  1. WNDE Home
  2. Our Firm
  3. Services
  4. Industries
  5. E-Guides
  6. Locations
  7. Careers
  8. Contact Us

Newsletter

Copyright © 2019. All Rights Reserved.
White Nelson Diehl Evans LLP. 2875 Michelle Drive, Suite 300 Irvine, California 92606 TEL 714-978-1300
Client Login

Forgot password?


[contact-form-7 id=”4250″ title=”Fraud Detection Booklet”]

[contact-form-7 id=”3415″ title=”Tax Planning Guide”]