The article “The Four Elements of Fraud”

 

We hear it in the news, we see it on 60 Minutes, 20/20 and we read about it in the paper, but often many businesses think they’re invulnerable to fraud. Owners and managers alike, believe that because they have a set of internal controls that their businesses are protected. This mindset of “if it’s not broken why fix it?”, begs the question do they really know “it’s” not broken?

As we’ve seen in the last two videos this complacent attitude has severe consequences, not only financially but publicly as well.

The article “The Four Elements of Fraud” focuses in on behavior – and offers insight to risk factors involved with fraudulent behavior and those behaviors that companies should keep an eye out for. While this is an older article, the fundamentals remain today.

Before reading the article:
Pretend you own your own business. You are a sole proprietor with three employees. One employee is a sales person; one employee is a bookkeeper and the other employee is in shipping. You have a product that is very popular amongst college students and therefore sales are amazing – and the company sustains itself very nicely. As the owner, you tend to travel to develop personal relationships with College Presidents; and Marketing VP’s.

After reading the article: Keeping the above scenario in mind (you’re the owner, etc.) respond to the prompt below in proper written format (please follow this Discussion Board Requirements & Rubric) and answer the following:

Prompt: As the owner of this company, what type of internal controls do you have in place to ensure that while you’re away the mice won’t play (ahem, engage in fraudulent behavior)? List at least four internal controls; and what type of protection of fraudulent behavior they control” or in other words will provide protection from.

Sample Solution

ollowing on from this, a subsequent key type of estrangement is the distance from work. For Marx, creation recognizes man from different creatures since “man through his own work … supports his own life and recreates society and the human species” (Pappenheim, 1967: 85). The industrialist cycle by which the laborer has no association with its item makes this type of estrangement. The worker has offered away his abilities as a trade off for a low pay as just a product. However, the worker has minimal other decision as this is his main opportunity of endurance in an industrialist state. To this end Marx requires the commotion of the class framework to be supplanted with a socialist state where work is esteemed as ‘life’s great need’ (Marx, 1891: 119). In setting of contemporary British legislative issues, Marx’s contention can be sabotaged by the declining size of the common laborers and more prominent relative power it has through worker’s organizations. In this manner, apparently Marx’s contentions are more vulnerable corresponding to current times yet it should be commended that they can in any case hold somewhat more than a century on.

This prompts a third type of estrangement is found in the distance of man from his ‘species-being’. A man’s animal categories being is portrayed by Marx as a man’s ‘inclination and his scholarly species-powers’ (Marx, 1844 refered to in Dale, 2016: 329). In easier words, our humankind. The course of work is fundamental to recognizing man from creature and for permitting people to become mindful (Sayers,1994). Where, in an entrepreneur society, work is sold as a ware rather than part of human undertaking ‘nature, is torn… ‘ from the specialists (Marx, 1844 refered to McLellan, 1978). Work turns out to be more like subjection and opportunity must be communicated at home (Pappenheim, 1967). This self-distance is found in entrepreneur social orders where work is paid by wage, given to laborers in quest for endurance rather than an outflow of information and abilities (Pappenheim, 1967). Free enterprise prevails with regards to estranging specialists from their human potential to the degree they become neglectful of it. This is the place where Marx anticipated that specialists become mindful and topple the bourgeoisie class. A critical study to this thinking is that in the years since his compositions, private enterprise has stayed predominant and has become to a great extent acknowledged in the Western powers.

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