Kooks will direct Its efforts In four directions: corporate responsibilities, training, employee oral, and future company recommendations that demonstrate financial, moral and ethical values. Kooks executives are throwing themselves at the feet of their Investors and customers, begging for mercy and promising to do better. However, It will require more than apologizes to settle the $34 million dollar embezzlement by the former vice president that demonstrates fiscal responsibility, restores the faith of shareholder, employees and customers that ensures investors the demand of future innovation will meet the company’s product supply.
Kooks Corporation said it maintained a system of closure controls and procedures that were designed to and believed to provide reasonable assurance that information, which is required to be timely, disclosed, is accumulated and communicated to management in a timely fashion. (Finance, 2010) Furthermore, although numerous actions were taken beginning in late December 2009 following the discovery of the unauthorized transactions, including changes relating to the Company’s banking procedures and certain other internal policies and procedures, as well as the other actions described in the Explanatory Note.
The Milwaukee Business Journal, a business financial publication serving greater Milwaukee reported Monday, February 22, 2010, American Express, which is supposed to be the whistle-blower in the Kooks scandal, is being sued by Kooks for failure to notify the headphone maker of the Chief Financial Officer’s questionable payments on her credit card bills. (Kirsches, 2010) This is an another move to demonstrate to shareholder that management is aggressive pursing all venues to restore funds to the cooperation.
By publicly holding American Expresses responsibilities for $16 million in wire transfers for Kooks bank accounts and $4 Kooks Corporation respect. Advertising in business Journals, economics publication and news papers provides timely information and trains the business community that Kooks Corporation is making transparent business decisions. A 2012 companies lose 5% of annual revenues to fraud, an estimated $3. 5 trillion annually, according to a survey of certified fraud examiners, based on cases they investigated from January 2010 to December 2011.
Norman, 2012) Training programs to incorporate prevention techniques will reduce these types of schemes and increase employee confidence. Kooks employees will require training in the following area: 1. Develop recruiting and hiring policies that include a thorough background check, including credit checks where necessitated by the position’s responsibilities. 2. Establish the right corporate culture, one that rewards loyalty and honesty. The tone needs to be set from the top and supported at every level of the organization. 3.
Develop a written fraud policy and add it to your employee handbook. Express in writing, what behaviors will not be tolerated and stress that they will be prosecuted. 4. Perform bank reconciliations on a monthly basis. Company owners should receive their bank statements directly from the bank. They should review cancelled checks, challenge and investigate any odd or unusual transactions. 5. Hire a CPA who specializes in fraud detection to review your internal controls and to perform unscheduled reviews of your financial statements. . Set up an independent fraud hotlist and encourage your employees to use it if they suspect any kind of fraud. 7. Insist that employees sake their accrued time off. Cross-train employees so they can review another employee’s work. 8. Consult your insurance carrier and review your employee-theft policy to verify that you have adequate levels of coverage. 9. Physically secure the company’s premises and assets. Lock your file cabinet drawers, install door postcards, and use a safe.
This will make it difficult to steal cash and other negotiable items. Protect your inventory of office and production supplies. Perform regular audits to track usage. 10. Treat all your employees with respect. Do not give them a rationalization to do you harm. Silversides, 2010) It is important to prosecute all theft within the workplace no matter how small. The policy for theft must be zero tolerance and all crimes must be reported immediately. People high in an organization cause the most monetary damage.
