By Roy L. Wesley
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Extra info for A Guide to Internal Loss Prevention
These sources also point out that management's laxity eventually results in increased premiums or rated policies, a n expense that must be deducted from profits. 36 A Guide to Internal Loss Prevention EXPENSE ACCOUNT AUDITING According to Webster's New World Dictionary, to audit means to make a formal, often periodic examination and check of accounts or financial records to verify their correctness. The auditing of expense account submissions is very important to management because travel and entertainment expenses are difficult to evaluate in terms of the benefit derived from the expense incurred.
As described in his confession, Bell's motives were monetary. Despite a $50,000-a-year salary, Bell was having financial problems which Zacharski offered 2 to help with. S. prosecutors with conspiring to steal trade secrets from IBM. Hitachi paid 3 $622,000, and Mitsubishi Electric, $26,000, to get the material. As recently as August 1983 it appeared that Hitachi was quietly pressuring its European distributors — 4 Olivetti in Italy and BASF in West Germany—to obtain the required information. COUNTERFEIT GOODS Counterfeiting of brand name products is a financial drain on the prime manufacturers.
Management must decide what if any action to take when any of these conditions are detected. Like payroll manipulation, cost manipulation can also be a problem. Cost is derived from payroll hours. Both elements should be reviewed on a periodic basis to make sure that fraud is not being committed. 5 INFORMATION SECURITY Paperwork has become the backbone of today's industry: Without proper paper flow, nothing would be accomplished. Here we examine —and offer some solutions for—the problems of protecting all this information.
A Guide to Internal Loss Prevention by Roy L. Wesley