Assume that a close family member came to you with information about a potential fraud at his or her employer. Prepare a summary of the advice you would offer as he or she considers taking the information forward.
What will be an ideal response?
One of the most critical steps in reporting concerns about a potential fraud is to be certain the
individual has a clear understanding of the facts giving rise to the concern. To avoid prematurely filing
a complaint that may be based on perception or emotion, a potential whistleblower should gather as
much evidence documenting the facts and circumstances surrounding the concern as possible. Many
prior whistleblowers note that they also made backup copies of any relevant documentation to be
stored off-site.
Once key facts and circumstances are documented, the potential whistleblower should
consider approaching his or her superiors to give them the opportunity to provide additional
information that may be relevant to the situation. In certain cases, the potential whistleblower
may not have access to legitimate facts or information that alter the circumstances. Thus, superiors
should have the opportunity to provide any relevant information.
When the information provided does not alleviate the concern, the potential whistleblower
should follow established company procedures for filing complaints related to integrity and ethics.
Depending on the response to filed complaints, the individual may consider the need for direct
reporting to the audit committee and internal audit.
Depending on the seriousness of the complaint, the individual should consider the need to
obtain outside legal counsel. Most argue that legal counsel from outside the organization, rather than
in-house legal counsel, should be pursued, given their independence from management. Legal counsel
should be obtained before making any claims to authorities outside the organization’s chain of command
(e.g., before reporting to the SEC).
If an individual decides to leave the organization, it would be important to disclose noted
concerns during the exit interview process. And, those discussions should be documented (i.e., date, time, individuals present, and topics discussed). Leaving the company without reporting the concern
to appropriate authorities may not provide adequate legal protection, even for the whistleblower.
You might also like to view...
Nell gives Al $50 in return for Al's promise to defame Sara. Nell hopes to ruin Sara's chances at a promotion. Nell finds out that Al did not hold up his end of the agreement. Which of the following statements is true?
A) Nell can get the money back from Al through litigation. B) Nell can get the money back and force Al to do as he promised. C) Legally, Nell can neither get the money back nor force Al to do as he promised. D) Nell can force Al to act through an appeal to the courts, but Al gets to keep the $50.
When a nation moves from a state-controlled economy toward free enterprise, it must develop a new set of business laws. If you could start from scratch, what kind of business law system would you adopt¾a civil law system or a common law system? What factors should be considered in deciding the business regulations to impose?
What will be an ideal response?
A scenario is a statement of assumptions about the operating environment of a particular
system at a given time; that is, it is a narrative description of the decision-situation setting. What does a scenario describe, and what may it also provide? What will be an ideal response?
When each data value in one sample is matched with a corresponding data value in another sample, the samples are known as
a. corresponding samples. b. matched samples. c. independent samples. d. pooled samples.