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

Exercise 49

Assume that you are the fraud expert for a large Fortune 500 company located in Miami, Florida. In a recent meeting with the executive committee, one of the officers explains that the fraud prevention program, which teaches managers and employees how to detect and report fraud, costs the company $150,000 a year. The officer then explains that it is a waste of time and money for the company to educate employees and managers about fraud. "Is it not the responsibility of the auditors to detect fraud " he questions. As the fraud expert of the company, the president asks you to explain why managers and employees should be educated in the detection of fraud.
1. What would you tell the committee about why it is important to train managers and employees in fraud detection
2. After explaining to the committee why it is important to train management and employees, the president asks you about effective ways to involve employees and managers in the prevention and detection of fraud. What would you tell the president