Chapter 8, Problem 2Q

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.

Employee fraud:

Fraud can be defined as an act of dishonesty that can be performed by a worker or an employee of an organization o fulfill his self interest or motives at the cost of the company’s worth. It refers to any activity committed by which an individual deceives or betrays another individual for his own mere benefits.

To determine: The three factors that contribute to employee fraud.