Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

Exercise 2

Rumors are spreading around an organization diat members of top management overstate their travel vouchers. A vice-president is alleged to have submitted a travel claim for a 2-week sales trip when he was actually on vacation. Another executive is reported to have told her secretary, "The reimbursement rates for transportation are so low that claiming more miles is the only way to come out even." Several division managers are believed to make regular claims for meals provided at no charge by airlines, conventions, or customers.
Required:
Explain the effect these rumors could have on the internal environment.