Week 2 - Fraud, corruption and IT Governance and Policy

Week 2 - AYB115

In separation of management and governance allows both disciplines to govern their types of activities, different organisational structures and serve different purposes. I believe it is essential that governance ensures that stakeholder needs, conditions and options are evaluated to determine enterprises objectives, setting direction and decision making, and monitoring performance. In contrast, management plans, builds, runs and monitors activities in alignment with the direction set by the governance body to achieve the enterprise objectives. (Ahmad, 2009)

For example when I was employed at MacDonalds, if there was no management, or any sort of governance to monitor performance of employees, this would lead poor quality service and food. If such an arrangements were risks of fraud, bribery or corruption could occur internally.

With such a structure, this establishes the enterprises control reduces the risk of fraud and misconduct. Further, with management this also enables fraud detection. In prevention of bribery, the governance ensures the stakeholders needs and the enterprises objectives, as such, this ensures stakeholders participation. Further, monitoring and managing the potential conflict of interest of members of the enterprise (corruption). 

Hence, I agree with the above statement.

Reference List:

Ahmad, A. (2009). Exploring COBIT Processes for ITG in Saudi Organisations: An EmpiricalStudy. The International Journal of Digital Accounting Research, 9(1577-8517), 99-126. Retrieved from:http://search.proquest.com.ezp01.library.qut.edu.au/docview/197412484/fulltextPDF?accountid=13380.