You are the owner of a privately owned, moderate-sized company. The business was founded over 20 years ago and has experienced impressive growth and…

You are the owner of a privately owned, moderate-sized company. The business was founded over 20 years ago and has experienced impressive growth and profitability. the only frustrating thing, however, is that you know the company’s profits would be scientifically higher if you could rid it of its problems with fraud. Your accountants estimate that the company has lost approximately 7 percent of its earnings to fraud over the past 5 years. the company has adequate controls in place and you try to ensure that people dont over ride them. Since you are the owner however, you often bypass some controls. You try to keep a close eye on most aspects of the business, but with about 500 employees, its difficult to know about everything that is going on. Employees have been caught in fraudulent activities in the past, but you have never bothered prosecuting them. You wish to avoid the negative publicity that would result, and you see no valid reason to publicly humiliate former employees – their shame won’t bring back the money they’ve stolen. Question: What aspects of the company can you change in order to reduce the amount of fraud that is accruing? Use five most known factors relating to creating a culture of honesty, openess, and assistance to explain your answer.

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