You are employed as a senior manager in an insurance organization. One of your responsibilities is to randomly review claims for reimbursement that have been submitted by people who have traveled on the organization's behalf.

By chance, you have pulled a falsified claim that was submitted by Andrew, one of your closest friends. You decide to confront your friend with your findings. Andrew, knowing vou are a friend, replies; "Sure the claim contains false items. Ever) body does it, and it is almost expected!"

Stunned by his confession, you tell him that he has to resubmit an accurate reimbursement claim. Andrew responds; "Look, I don't feel that I get paid enough in this lousy organization, and this is my way of getting a few extra dollars each month. You know how they have been working all of us to death after the layoffs. I'm entitled to this, and I refuse to resubmit the claim."

Required

a. What do you think of Andrew's argument?

b. Should you have approached him differently?

c. What should you do now and why?

d. How might the company's control system be designed to foster high ethical standards regarding reimbursement claims and other issues?