Saks Fifth Avenue Case Study Essay

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Running head: CASE STUDY 3.3: SAKS FIFTH AVENUE Case Study 3.3: Saks Fifth Avenue Liberty University 13 September, 2009 Abstract The Saks Fifth Avenue case study concentrates on the human aspects of internal controls. Of note are Saks’ zero-tolerance policy of employee theft, anti-harassment policy and complaint procedure. Also, the case study highlights control activities in a major retail store. Finally, it questions what an auditor’s role is concerning employee’s work environment. Question #1 In your opinion, was Saks’ zero-tolerance policy for employee theft reasonable? Was the policy likely cost-effective? Defend your answers. The case presented only one instance when Fierro was caught stealing. Employee theft is…show more content…
Saks’ anti-harassment policy and complaint procedures provide guidance and behavior boundaries to promote effective and efficient use of employee paid time at work. The policy intends to not only provide the employees the best environment to maximize profits, but also keep employee actions within rules and regulations to avoid costly litigation and fines. If Saks’ did not have a complaint procedure, the supervisors would be able to regulate their departments, but very few could keep the supervisors in check. The complaint procedures allows every employee to regulate each other, resulting in conformity by all to the policy. Question #3 Identify five control activities that you would commonly find in a men’s clothing department of a major department store. Identify the control objective associated with each of these activities. Computer based cash registers: Such systems automatically record various types of relevant data. Examples include employee codes, items and quantity purchased, totals due, type of

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