Question

In: Accounting

Is it because younger employees tend to be less committed to the idea of conforming to...

Is it because younger employees tend to be less committed to the idea of conforming to established social rules and structures that they are more likely to engage in fraudulent activities?

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Expert Solution

Ans) I believe this would not be appropriate to generalize all younger employees will be involved in fraudulent activities. Fraudulent activities are more to be blamed to organization’s weak internal control system and policies and also mainly to those employees who stay comparatively longer in the same position and in department. This fact has been supported by UNSD ( United nations Statistics Division)  as well, which publishes the data regarding the cases of many fraudulent activities and its type in the society. So the fact which is given in the question cannot stand valid as it factually established that it is not younger employees rather than employees with experience who involves in such activities along with weaker internal control systems and policies.

Just for an example if an employee take care of purchasing activities and also is the approver for such purchases then due to this weaker internal control, he may tend to do some fraud by involving supplier for getting inflated priced material and favoring some specific supplier in lieu of some benefits. So here the the employee who takes care purchasing activity and approver should be different. And the same employee should have not been spent much in the purchasing department, so that he does not establish the relationship with supplier.


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