Question

An employee devises a payroll scheme that costs the employer $150. The employer discovers the fraud but decides not to confront the employee since the amount of the fraud is small.

Discuss why the above course of action is not advisable and how you would handle the situation?

Answer 1

Fraud is a wrongful act which results in personal or financial gain. It does not include nor can be quantified as small or big . The above course of action is not advisable as it would motivate the employee to incur more such practises which are harmful to the Organization and can have major effect on the internal control of the organization. Hence the employer should have confronted the employee in personal so that he would have known that it is wrong and he continuing this would endanger him.