1. FORENSIC ACCOUNTING - BA124 - Fall 2010Slide 4-1 Today’s Topics n Preventing Fraud-Part I n Creating the culture n Shenanigans n Introduction-real world focus n The 7 Shenanigans

2. FORENSIC ACCOUNTING - BA124 - Fall 2010Slide 4-2 Creating the Culture n Not everyone is honest n Desperate people do desperate things! n Four ways to establish the culture n Hire honest people and train them n Cultivate a positive work environment n Spread a relevant and real (understandable) code of ethics n Provide employee assistance programs

3. FORENSIC ACCOUNTING - BA124 - Fall 2010Slide 4-3 Hire and Train Honest People n 30-30-40! n Privacy laws create problems n Resume fraud n Reinforce company policy n If it is to be “no tolerance”; make it no tolerance

4. FORENSIC ACCOUNTING - BA124 - Fall 2010Slide 4-4 Positive Work Environment n Happy employees usually won’t rip you off! n “I don’t get mad, I get even” mentality n List on page 97 in the text.

5. FORENSIC ACCOUNTING - BA124 - Fall 2010Slide 4-5 Code of Ethics n Make it relevant and real n Emphasize who gets hurt n Promote open discussion

6. FORENSIC ACCOUNTING - BA124 - Fall 2010Slide 4-6 Employee Assistance Programs n We are all human n We can all use help n 6:1 return ratio for EAPs n Combine with your Management by Objectives (MBO) program n Private MBOs