What method emphasizes discouraging collusion between employees and vendors?

The method that focuses on discouraging collusion between employees and vendors is informing outside contacts of anti-fraud policies. By reaching out to vendors and other external parties, the organization creates an awareness and understanding of its commitment to fraud prevention. This action helps to establish clear expectations and protocols regarding ethical behavior, reducing the likelihood that vendors will engage in collusion with employees.

When outside parties are informed about the organization’s anti-fraud policies, they are more likely to be vigilant and report any suspicious activity. This transparency serves to create a culture of accountability and integrity, which can deter both employees and vendors from attempting to work together to commit fraudulent activities.

While developing collaborative agreements may foster good relations with vendors, it could inadvertently create an environment where collusion could thrive if not managed correctly. Implementing strict audits is essential for monitoring compliance and identifying irregularities, but it may not directly prevent collusion as effectively as communication of policies. Creating employee counseling systems is beneficial for addressing employee concerns or misconduct but does not specifically target collusion between employees and vendors.