Question

Social Framework
A. Discuss the culture of the organization in which the fraud occurred.
B. How was the company’s management impacted by the fraud and the investigation?
C. How were the employees of the company impacted by the fraud and the investigation?
D. How was the public impacted by this fraud scheme?

http://www.arxisfinancial.com/images/pdfs/Fraud-Health_South_Case.pdf

Answer 1

Answers (A)

Businesses work best when a dedicated staff is led with passion, dedication, and a belief in your company’s purpose and culture. Employee engagement is a hot-button issue in the business world—and for an important reason. Company culture often dictates how invested your employees are in the company, and in turn, how loyal they will stay. If your company has been defrauded, it might be time to take a hard look

ANSWRES (B)

When a company is faced with an internal fraud investigation, it has several options concerning which direction to take the investigation. When regulatory agencies and reporting requirements are at hand the choices are more limited, but in instances where there are no outside reporting pressures, at what point the company calls for reinforcements is clearly a decision that needs to be made.

Two important considerations face every company during this process:

1. when to consider hiring an outside consulting firm; and,
2. When, or more importantly if, the company should report the fraud to law enforcement.

Running an investigation solely within the company structure has certain benefits. These benefits can be diminished as outside forces are called in and can practically disappear upon law enforcement involvement. As the company gets closer to making this decision and weighing the advantages and disadvantages that are present, it may soon see other benefits start to emerge.

Answers (C)

The purpose of this paper is to investigate the causes and impact of employee fraud, focusing on one particular industry, namely, the automotive industry.

Design/methodology/approach

One company was selected as a case for the study. Qualitative data analysis was used for the study, with two techniques for data collection. First was the content or document analysis on various reports, such as employee fraud reports and records of disciplinary action, and second were a series of interviews with employees from different levels and various departments of the company.

Answers (D)

The types of fraudulent schemes which the public sector faces are varied and the perpetrators can come from any level in the organization; from senior management, whose authority makes it easier for them to override controls, to the contract worker facing personal financial pressures, and may be tempted to overcharge for work done. Experience shows that schemes often start small but increase as they succeed.