個案總覽

Focuses on the three-way interaction among internal controls, employee behavior, and incentives. Salesmen are illegally providing kickbacks to customers of this beer-distribution firm. In turn, salesmen are reimbursing themselves by filing fraudulent expense reports. The owner/president of the business faces a difficult decision: if he fires the individuals involved, he risks a total business shut-down. Closes with the question of how to improve internal controls to avoid this type of occurrence in the future.

Describes the actions taken by the owner/president to resolve the dilemma.