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MBA Chapter 4

MBA Chapter 4 - Quentin Stephens Jr MBA 590 Chapter 4...

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Quentin Stephens Jr. MBA 590 Chapter 4 Questions 1-5, Short Cases 1-3, extensive Cases 1-3 09/15/08 Questions 1. In chapter 4 it discusses how a business can create a culture of honesty, openness, and assistance by using three factors which are (1) hiring people who are honest and “providing fraud awareness training; (2) having a well defined code of conduct, which includes have a positive work environment; and (3) having programs for employees that help them deal with personal pressures. 2. Ways to eliminate corporate fraud opportunities (1) having good internal controls, (2) discouraging collusion between employees and customers or vendors and clearly informing vendors and other outside contacts of the company’s policies against fraud, (3) Monitoring company’s and providing a hotline (whistle-blowing system) for anonymous tips, (4) creating an expectation of punishment, and (5) conducting proactive auditing. 3. The purpose behind companies having a code of conduct is so that it clarifies to
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