Short Case 3

Jason works at a new software development company. The company has been in existence for only two years. Since the company is new, everybody is working extra hours and spending all of their time developing new products that can be sold to customers. Everybody is busy, and there is very little time for manager-employee interviews. The culture of the company is trusting and fun. When Jason started with the company, the only agreement he had to sign was an agreement not to transfer company software secrets to other organizations. Earlier in the year, Jason learned of an instance where another employee in accounting was fired. The reason rumored to be fraudulent behavior, but nobody really knew the reason. Do the company's operating procedures encourage fraudulent behavior? In what ways?