This case is about decision$-$making, ethics, values, and attitudes. How do these issues play a role in one employee$$s progress from a valued employee to a criminal with a fraud charge?

Julie Smith, an accounts payable clerk for an insurance company, had been lucky to get hired to the position with only high$-$school education. Her salary was quite small, yet her tasks and responsibilities were fairly responsible. She was responsible for processing insurance claims for more than $500$ corporate policies. Although her work was repetitive and tedious, and she did not have the authority to make her own decisions, she enjoyed her job and felt that the company treated her well.

The company was fairly traditional, everything was done $$by the book$$ with strict procedures that had to be followed. The policies that directly related to clients seemed to be somewhat lax as there were no reports about claims made against their accounts, and since they paid a flat fee, they had little incentive to actively monitor claims activities. In fact, even the company$$s own internal audit process examined corporate commercial accounts only every six years.

Julie had the authority to sign for, and issue cheques for any claims under $$10,000.$ She was reasonably happy in her job, but as a single mother with a toddler she struggled to make ends meet on her salary. Her options for increasing her income were very limited$.$ Her daycare costs were the single highest monthly expense. As she knew the processes, and the audit policies intimately, she came up with an idea of issuing the monthly cheques to the day care provider from the company$$s accounts. This went on for over eight months as it seemed far too easy to defraud the company with the inside knowledge she had.

However, she did start to feel guilty and asked to be transferred to another depart to stop herself from continuing with the false cheques. She was sure that everything would work out well, but she had made one minor mistake. On the last claim she had invented she had not filled in a field that coded the claim for accounting system. Because of the missing field, her fraud was discovered. She was charged with criminal intent.

QUESTION:

After completing your analysis of the assigned case study, use the following guidelines

to prepare your report. Your report should have five sections.

$1.$ Case Summary

$2.$ Major Problems and Causes

$3.$ Possible Solutions

$4.$ Recommended Action

$5.$ Implementation Plan