Organization funds and other assets employees who

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Organization Funds and Other Assets Employees who have access to organization funds must follow prescribed procedures for recording, handling, and protecting money. Organization Records and Communications Employees responsible for accounting and record keeping must not make or engage in any false record or communication of any kind, whether external or internal. Dealing with Outside People Employees must take care to separate their personal roles from their organizational positions when and Organizations communicating on matters not involving the organization's business. All employees must make every effort to achieve complete, accurate, and timely communications in all matters relevant to customers, suppliers, government authorities, the public, and others within the organization. Privacy and Confidentiality When handling financial and personal information about customers and others with whom the organization has dealings, employees should collect, use, and retain onlythe information necessaryfor the organization's business; internal access to information should be limited to those with a legitimate business reason for seeking that information. Source: AICPA, "CPA's Hondbook of Froud ond Commerciol Crime Prevention " Copyright by American lnstitute of CPAs. All rights reserved. Used with permission. Creating a Positive Workplace Environment Research shows that wrongdoing occurs less frequently when employees have positive feelings about their employer than when they feel abused, threatened, or ignored. A positive workplace can generate improved employee morale, which may reduce employees'likelihood of committing fraud against the company. Employees should also have the ability to obtain advice internally before making decisions that appear to have legal or ethical implications. Many organizations, including all U.S. public companies, have a whistleblowing process for employees to report actual or suspected wrongdoing or potential violations of the code of conduct or ethics policy. The vignette on page 360 describes how public companies are required to have whistleblower hotlines, which are often directed to or monitored by an ethics officer or other trusted individual responsible for investigating and reporting fraud or illegal acts. Hiring and Promoting Appropriate Employees To be successful in preventing fraud, well-run companies implement effective screening policies to reduce the likelihood of hiring and promoting individuals with low levels of honestp especially those who hold positions of trust. Such policies may include background checks on Chapter 1l / CONSIDERING THE RISK OF FRAUD 565
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Management's Responsibility to Evaluate Risks of Fraud individuals being considered for employment or for promotion to positions of trust.
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