Many Reasons Why Employees Steal From The Company

Many Reasons Why Employees Steal From The Company
19/07/2017 Comments Off on Many Reasons Why Employees Steal From The Company Academic Papers on Business Studies,Other Academic Papers,Sample Academic Papers admin

Employees cheat for many reasons including paying off gambling debts, indulgence in other vices such as womanizing, drugs, alcohol or just to trying to equal their peers in material possessions which could be a bigger house, expensive cars or expensive vacations. Whatever the reason, the fact is that cheating is a crime and should not be condoned in any manner. Most people cheat because they think that they can pay off or replace what they have taken before it is discovered. However, a little cheating turns into cheating for large amounts if their thievery is not initially detected.

Cheating employees are normal everyday people who hold regular jobs, are probably religious and have a strong sense of family values and are in a position of trust which makes it easier for them to steal from the company. Companies should implement protective measures so that the employees are not provided the opportunity to cheat. Failing that, strict disciplinary measures must be taken to deter other employees from following the same path.  Organizations must also keep a strict watch on employees, service organizations, contractors and vendors, volunteers and customers to deter fraudulent activities. However, any fraud or discrepancy that is committed is mostly done with the help of employees of the organization, so the company must implement policies/procedures for checks and balances on employees.

For this organization must conduct realistic evaluations of internal controls to identify probable weak points. This envisages control over “Generally Accepted Account Principles” (GAAP) including capability, implement antifraud programs and controls in the organization,  and also by maintaining  control over out of routine and non-systematic dealings, make sure that financial reporting is according to set procedures and all in the general ledger are justified, commence, authorize and record and process journal entries into the general ledger and maintain a record of  frequent and non-frequent adjustments to the books of accounts .

There is conclusive evidence that internal crimes committed by employees cause losses of billions of dollars per year to the organizations that employ them, to shareholders and stakeholders and ultimately to consumers. The most effective way to check this thievery is prevention and the promise of strict disciplinary action which might be to the total extent of the law.  Disciplinary action should be in accordance with the person’s position in the company and the trust and responsibility the placed in the employee. Cheating employees can range from accounts clerks to directors or highly placed financial officers of the company. The higher placed the person, the greater the certainty that the person cheated out of greed and not because of any basic need.

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