Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman

Exercise 63

Len Haxton is the owner of a local CPA firm with four separate offices in a medium-size town. He and his wife started the firm 20 years ago, and they now have over 50 full-time employees. Recently, he discovered that one of his employees had stolen over $20,000 from the business during the past six months because of lax internal controls. Len was furious about the situation, but was uncertain about whether he should initiate a criminal investigation or just fire the employee.
1. List four reasons why Len should have the employee prosecuted.
2. List three reasons why Len might not want to seek prosecution of his employee.
3. If you were Len, what would you do