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:
Internal auditors discovered a payroll fraud in a large hospital when they observed, on a surprise basis, the distribution of paychecks. The supervisors of each department distribute paychecks to employees and are supposed to return unclaimed checks to the payroll department. When the auditors took control of and followed up on an unclaimed paycheck for an employee in the food service department, they discovered that the employee had quit four months previously. The employee and the supervisor had an argument, and the employee had simply left and never returned. The supervisor had continued to turn in a time card for the employee and, when the paychecks came for distribution, had taken the unclaimed checks and cashed them.
Describe the recommendation that the internal auditors should make to prevent similar problems in the future.
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