fraud – but it does make it easier to commit and that should betake into consideration.
SOLUTION: It is important to evaluate carefully this situation to determine if it indeed presents an internal control weakness. f.
You were told that the performance of division and department managers is evaluated on a subjective basis, because Go-Go’s management believes that formal performance evaluation procedures are counterproductive. PROBLEM: This indicates a possible problem with management's human resource standards and their methods of monitoring performance. Subjective evaluation methods are often not be as effective in detecting problems or in identifying good performance
as objective measures, such as formal performance
evaluation procedures, that have been communicated to employees.
SOLUTION: It is important to evaluate carefully this situation to determine if it indeed presents an internal control weakness. g.
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