A personnel department is responsible for processing placement agency fees for new hires. A recruiter established some bogus placement agencies and, when interviewing walk-in applicants, the recruiter would list one of the bogus agencies as referring the candidate. A possible means of detection or deterrence is to
Process all personnel agency invoices via a purchase order through the purchasing department.
Verify new vendors to firms listed in a professional association catalogue and/or verify the vendor name and address through the telephone book.
Monitor the closeness of the relationships of recruiters with specific vendors.
Require all employees to sign an annual conflict of interest statement.
Want to practice for QIA - Qualified Internal Auditor ?