How can we get into employees circle of trust

Assignment Help Business Management

Reference no: EM1348680

Circle of Trust

In the '80s, McDonalds conducted a study to determine what motivated its employees to steal. Their studies revealed that:
- One-third of employees stole only if they had the opportunity (unlocked cash drawer, alarm not set at night, etc)
- One-third of employees stole no matter what the circumstances
- One-third of employees never stole no matter what the situation

Our number one objective as auditors is to reduce a company's exposure to fraud. One of the most effective strategies for auditors is to immerse yourself in the operation to learn about employee behaviors, along with likes, and dislikes. For example, if you know an employee is suffering from congestive heart failure and he requires expensive medication that the insurance company does not pay for, you may cross-reference payroll records to see if he is able to pay for the med's through salary alone.

1. How can we get into employees' "circle of trust?"

2. In order for us to conclude that someone is concealing evidence, we must first identify how they go about their business. What signs should we look for? Over time, if we are not careful, working relationships can form into strong bonds which can cloud our objectivity. We can ill-afford to have our integrity questioned at any stage of the audit.

3. Do you have an example of how auditors have applied 'spirit of the law' and / or 'letter of the law' in their travels?

Reference no: EM1348680

Questions Cloud

Compute the equilibrium level of income for the open economy : Compute the equilibrium level of income for the open economy aggregate expenditure model.

Key elements identified : In comparison to corporation operations management, people are inclined to manage their personal lives in accordance with systematic maintenance of record keeping.

Reasons to prevent outsider obtaining free network acces : List three reasons you might still want to prevent an outsider obtaining free network access by intruding into your wireless network.

What is its angular displacement in this time : What is its angular displacement in this time.

How can we get into employees circle of trust : What signs should we look for and Over time, if we are not careful, working relationships can form into strong bonds which can cloud our objectivity.

Why does the neverwet spray protect it from water : As is know, acetone is a polar molecule like water, so isn't it suppose to mix? So my question is: why does the Neverwet spray protect it from water but not from oils and detergents?

Marginal analysis for optimal decisions : Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing air problem in its mines.

Illustrate what type of industry benefits the most : Illustrate what type of industry benefits the most from technological innovation? Select an article from either either a peer reviewed or current popular periodical on an industry of your choice and discuss this question from the perspective of th..

Introduction to cellular macromolecules : Cellular macromolecules to which a drug binds to initiate its effects are known as:

User Account

All Pages