Question

a )Many fraudulent financial reporting schemes have unraveled due to whistleblowers or hotline tips. In today’s fast-paced environment, these fraud prevention programs are essential components in an organization’s internal control structure. Unfortunately, there are a various negative connotations with whistleblowers. Imagine you developing the whistleblower component of the company you work for, how would you structure the whistleblower policy? What measures would you put in place to reduce the barriers for employees to report fraudulent activity? (To answer this discussion question, you can use your current job, previous job experience or fictional job.)

b) Reflect on what you have learned and how you have benefited from taking this course. Reflect and describe which key concepts and topics in this course have made you a stronger candidate to enter the business world. Discuss how this course has affected you in your professional development as a student and as a person as well as encouraging you on your academic path.

Answer 1

Ans :A)

Whistleblower policies are most efficient and effective when either incentives exist for whistleblowers or no negative impacts occur as a result of a whistleblower coming forward. In the current environment, opportunities exist to create whistleblower hotlines via telephone or via the internet within the organisation. Through this mechanism, the person coming forward can remain anonymous without people within the organisation knowing who has stepped forward and spoken. The hotline should be created with a very simple process, which takes a limited time for an employee to complete in order not to deter the employee.

In order to reduce the barriers, the organisation should have a culture of non-fraudulent activity and a history of no fraud tolerance. By holding regular meetings and emphasising the importance of no fraudulent activity and the means for persons to report fraud, employees will be encouraged to report fraud where it occurs.