auditing formative

auditing formative - Whistleblowing can be defined as One...

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Whistleblowing can be defined as ‘One who reveals wrongdoing within an organization to the public or to those in positions of authority.’ The government has made a conscious effort in order to promote whistleblowing. Employer rights have been established if the correct procedure is processed; whistle blowers will not be discriminated against or put down by employers. An effective whistleblower hotline is a powerful tool for fighting fraud and is also highly beneficial to internal auditors. Most employees, who are aware of fraudulent or unethical activities going on, remain silent for fear of jeopardising their careers. Employees place greater trust in a whistleblowing service which exists separately from their company. Not only does it successfully expose systematic fraud, it also captures other corrupt behaviour e.g. bullying, which can have equally detrimental effects. Disclosures can be made by phone, mail, email, web-server, fax or text – All of which can be done anonymously. There are generally four categories of whistle blowers: Honest loyal hard-working employee – Most employees are honest and are happy with their pay and conditions. They understand and do not like it if an employee is committing fraud or breaching the rules. Fellow offender – Sometimes a fellow offender will report the other in hopes that their own activity will go unnoticed. Failed relationships – Office romance and affairs that come to a bad ending may result in whistle blowing if the partner had been committing fraud. Malicious intent – Although there should be few of these, they should still be recorded in order to discover what type of organisation it is. According to the ACFE (Association of Certified Fraud Examiners) 40% of fraud is
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  • Spring '10
  • yates
  • U.S. Securities and Exchange Commission, Sarbanes – Oxley, successful whistleblowing hotline, effective whistleblower hotline

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auditing formative - Whistleblowing can be defined as One...

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