As the management was unaware of the existing fraud that was going in the company, it raises doubt over the working of the management and principles which they followed. To prevent such types of fraud in the Company, management needs to implement proper principles for its employees. To determine : The fraud made by the record keeper creates the question over the principle used by the management of the company.

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Chapter 6, Problem 1E

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Introduction: As the management was unaware of the existing fraud that was going in the company, it raises doubt over the working of the management and principles which they followed. To prevent such types of fraud in the Company, management needs to implement proper principles for its employees.

To determine: The fraud made by the record keeper creates the question over the principle used by the management of the company.

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