Ljb Company's Internal Controls

Company X is committed to providing education for each employee to report unethical behavior and resolve conflicts without fear of retaliation. One such example would be the need to report employee theft. Employee theft is not only unethical but could also be criminal in nature. Regardless of employee status (entry level or upper management), each employee should feel it their responsibility to report any unethical behavior they observe. Employee theft can range from theft of money, time, office supplies or merchandise to providing proprietary information to unauthorized entities. These activities can result in a negative public image of Company X and should be reported as quickly as possible. Prior to reporting such offenses, each employee should ensure the accuracy of the evidence they will be reporting. There are various methods to report such abuses including but not limited to an anonymous toll free hot line number, verbal or electronic reporting to the local Human Resources office and the open door policy which encourages employees to approach members of management without the fear of

Take appropriate disciplinary measures when someone engages in criminal conduct such as bribery, fraud, money laundering, etc.

Additionally, counsel payroll personnel to protect W-2 details. Thieves may contact the payroll department and ask for a list of employees and their W-2 information. If someone in your company releases this information, you could be liable.

A corporation’s human resources branch is the joining between its individuals and every unit beneath its top. On the outside, an “HR division look as if there is to do little more than hold on to organizations records. In employing and hiring HR administrators are also working more with the “recruiting and hiring departments in their offices to help them make better decisions.” The reason for this is very easy to understand, HR executive has a tendency to have countless people skills,” which comes accessible because a job meeting is all about reading people.” (https://cenidianblog.wordpress.com)

Cash is such an important current asset to a business, especially for the every day running of it, so ready access to cash is crucial. Therefore, every company must utilize safeguards to protect and manage their cash. An alarming statistic in one of The National Restaurant Association’s (NRA) reports shows that employee theft cost $8.5B to its members in 2007 – the equivalent of 4% of food sales. Furthermore, only 10% of employees do not commit fraud in any situation, while 5% do commit fraud, and the other 85% will actually consider

Employee theft is a tremendous expense each year and employers believe that these tests will remove the largest potential offenders. Employee theft is a tremendous expense each year and employers believe that these tests will remove the largest potential offenders.

In today’s society, people can be dishonest and cheat their way through life. Working in anywhere, your bosses and coworkers have to gain your trust. For over a year now, I work at Panera Bread. We are always hiring new staff throughout spring and summer. People come and go for stealing food or not treating customers with respect. Until recently, one of my managers experienced embezzlement. My manager is sending her child off to college and taking care of the rest of her family, which is a big expense. Someone apart of our staff stole three hundred dollars from her purse. She lost her whole paycheck that she had earned.

According to Walsh (2000) one of the major reasons for employee theft is low morale at the workplace. Second a lack of control over inventory. Sometimes young employees are subjectivity to peer press to be part of the group can encourage theft. The employee feels that the business or company has wronged or mistreated them in some way. This may be why employees feel underpaid and under-appreciate for their “hard” work done. Like any crime, there must be motive, method and opportunity. It is easy to steal because the employer does not have preventive measures to stop them. Preventive measures are crucial to reducing the risk of employee theft. If preventive measures are not existent then the opportunity to steal is very high. Employers should limit the opportunities to steal. Employers should open their own mail, segregate duties, and particularly bookkeeping functions. Also, employers should not have the check writer balance the checkbook and do not use cash. Younger employees do not think prudently, and tend to be impulsive (Walsh 2000). This is also a major reason why businesses suffer from low production and profit loss.

HR also serves organisations by handling administrative duties such as payroll, supporting workplace safety and advising line managers regarding employee relations (Mayhew, 2014).

Employee theft is a problem of considerable size for many companies. Many corporate security experts estimate that 25 to 40 percent of all employees steal from their employers, and the U.S. Department of Commerce (DOC) estimates that employee theft of cash, property, and merchandise may cost American businesses as much as $50 billion on an annual basis. It is also not uncommon in today's workplaces. And it is often the employee you least suspect that is the culprit

Hi Bridgett, it’s sad that people are not trust worthy, especially on job, which provideds them with a lifestyle of living. The astounding thing is that these individuals truly think they will never get got, and they continued to steal until they are caught. However, hopefully these individual learn that stealing doesn’t pay and make better decision throughout their life. However, this doesn’t surprise me, because I see it all the time with employees stealing from their employer. Basically with bank employees. I came across one incident with a bank teller was stealing money from the banking customer and was doing it for years, she was caught and arrested.

More than two million workers in America has been reported of violence at work place each where while one of the main reason behind business failure is cause by employee theft. So, before it’s too late and you targeted by a fraudster, it is better to conduct background check before hiring the new employee to get easy access to important information linked with your employee.

Management support can reduce losses and make sure policies and procedures are follow through. Effective planning and budgeting will help the company with planning and analyzing the situation at hands. Internal and external relations, can help prevent employee theft. Loss prevention are more likely to get information regarding theft because of respect. Job application screening and employee socialization, screening job application is a major theft prevention technique. Accountability, counting, and auditing helps employers be responsible with going after the employee and making sure nothing is being stolen. Policy and procedural

Employee theft is a crime that is costing U.S. companies a great deal of money. Employee thefts are growing in number, partially because the perpetrators really do not see themselves as criminals and rationalize what they are doing in much the same way as taxpayers rationalize income tax fraud. Employee theft is one of many personnel problems that is easier to prevent than to solve. Prevention should begin before an applicant becomes an employee. Some theft

* Recruitment: here lies the key role of an HR department. Thousands of people send in their cvs for any job and HR is responsible for shortlisting candidates.