What I hate the most about a fraud investigation is the request of management from us to recommend a disciplinary action against the fraudulent i.e. termination, a warning letter etc. In my view, it is not up to the audit to decide, it is up to the management. I seen so many reports i.e. based on the audit recommendation a warning letter should be issued……… this would put us under lots of pressure, what do you think?

I'm not in HR, but I believe that the disciplinary descision should be HR, to ensure consistancy with the bank policies and procedures. If there was a violation of policy, there may be a need for bank counsel to be involved.

There is a difference in training and expertise required for the different positions. Audit and security are trained to identify the weaknesses which allowed the fraud to occur, HR is the area that handles all other aspects of employee relations.

On one hand I agree with you, on the other hand we should not walk away from the expectations they have from us

Based on our analysis they should draw their own conclusions - however, in our investigation reports we now specifically mention if the failures warrant any warning letters or not

I would not want to be put in the position of having to decide appropriate bonuses for employees that were doing a good job, and I wouldn't want to decide sanctions for employees that violate policy.

I don't see what the issue is? Was fraud found or not? If fraud was actually found - file the police report and the SAR and fire the individual. If you have no proof, then you have no cause for disciplinary action, unless your talking about policy violations and they should follow your normal disciplinary action sequence as outlined in your personnel policies. I don't see a gray area here.