CH8 Privacy & Ethics

Question 1

What 3 factors drives employees to commit

fraud?

Answer 1

Opportunity - Position of trust, little supervision
Incentive/Pressure - personal pressures
Rationalization - willingness to make it ok

Question 2

Changes that can be red flags for fraud, actions an employee takes.
LFVUC

Answer 2

Change in Lifestyle
Personal Financial difficulties
Refusal to take vacation
Unsupported transactions
Lack of cooperation with Auditors

Question 3

Who carries out fraud?

LAMU

Answer 3

Lives beyond means
Addiction issues
Marital issues/affair
Unhappy with their compensation

Question 4

Name 3 examples of WCB fraud

Answer 4

Fake injury in the workplace
Injury outside the workplace but claiming it happened at work
Employee works while receiving WCB benefits and does not report income

Question 5

Of the 10 privacy principles, what are the first 5?

AICLL (Social Cali)

Answer 5

1) Accountability
2) Identifying purpose
3) Consent
4) Limiting Collection
5) Limiting use, Disclosure and retention

Question 6

Of the 10 privacy principles, what are the last 5?

ASOIC (Social Cali)

Answer 6

6) Accuracy
7) Safeguards
8) Openness
9) Individual Access
10) Challenging Compliance

Question 7

List 5 types of Payroll Fraud

WCWGE

Answer 7

1) False wages fraud
2) Commission Fraud
3) WCB Fraud
4) Ghost employees
5) False expense claims