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Employee Fraud

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Discuss in general the ethical issues when employees are tempted to defraud their employer or when companies defraud the public. What sort of situations can lead to this behavior? What are the costs of fraudulent behavior? What kind of controls can help prevent ethical problems?

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What are the costs of fraudulent behavior? What kind of controls can help prevent ethical problems?

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When employees contemplate defrauding their employer, they have to consider the higher ethical implications. First, stealing is not ethical (and also illegal). Stealing from an employer is highly unethical because there is a trust that is formed between the employer and employee. The employee may have access to funds that others do not and breaching that type of trust is also unethical. Furthermore, by stealing from the employer, employees are also ...

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