Other Types of Fraud
See the “Saks Fifth Avenue” case for this question
In your opinion, was Saks’ zero tolerance policy for employee theft reasonable? Was the policy likely cost-effective? Defend your answers.
Did Saks’ anti-harassment policy and the related complaint procedure qualify as internal controls? Explain.
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.
Should a company’s independent auditors be concerned with whether or not a client provides a non-hostile work environment for its employees? If your answer is “yes,” identify the specific audit issues that would be relevant in this context.