Module 6 discussion
Review “Application Case 16-1: The High Cost of Theft and
Fraud” and answer the following questions.
How do internal controls such as separation of duties,
redundancy, and centralized processes discourage employees from committing
fraudulent acts?
Why are some small businesses more susceptible to employee
fraud and theft? Explain.
Given that the ACFE “2010 Global Fraud Study” reported that
employee tips were the most common way that fraudulent acts are discovered, how
can an organization encourage honest employees to report fraudulent behavior
committed by co-workers, supervisors, clients, or vendors?
How important is it for an organization to have a code of
conduct that defines fraudulent behavior, and what happens to those individuals
who commit such acts?
