Internal controls such as separation of duties

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Reference no: EM132100208

Explain your thoughts Disagree or Agree to the Discussion:

Internal controls such as separation of duties, redundancy, and centralized processes discourage employees from committing fraudulent acts because any paperwork or transaction the control any finance would go to different employees. Unless all of those employees are corrupted, it could be hard for them to steal the companies money. " an effective control is to have separation in duties whenever the employees handle money. Some small businesses more susceptible to employee fraud and theft because they do not have many employees who control the money. Furthermore, they might hire people who have criminal issues who steal many things from the business. Any organization can encourage honest employees to report fraudulent behavior committed by co-workers, supervisors, clients, or vendors by offering them a bonus. This action could motivate honest employees because they would be happy with the extra money. Furthermore, reporting any dishonest employee could keep their job because some frauds could damage the company and they won't be able to keep their employees. It is essential for the company to have a code of conduct that defines fraudulent behavior, and what happens to those individuals who commit such acts. It could minimize any fraud act because some employees who were working in a different company might use to take stuff from his/her previous company without any issues.

Reference no: EM132100208

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