Question
The impact of employee and management fraud is staggering both in terms of dollar costs and effect on the victims. Presented below is an independent
| The impact of employee and management fraud is staggering both in terms of dollar costs and effect on the victims. Presented below is an independent case of employee wrongdoing: A retail store that was part of a national chain experienced an abnormal inventory shrinkage in its electronics department. The internal auditors, noting this shrinkage, included an in-depth evaluation of the department in the scope of their audit of the store. During the review, the auditors were "tipped" by an employee that a particular customer bought a large number of small electronic components, and that the customer always went to a certain cashier's checkout line. The auditor's work revealed that the cashier and the customer had colluded to steal a number of components. The cashier did not record the sale of several items the customer took from the store. Describe the recommendation that the internal auditors should make to prevent similar problems in the future. |
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