Ethical Dilemma A. Does Terry's Term Paper

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The presence of an opportunity: Terry took advantage of an opportunity that presented itself because of poor Internal Control procedures, most notably poor separation of duties.

The Capacity of Rationalization: Terry acted because of her own personal family needs that had arisen due to medical bills. She also acted out of a sense of entitlement, believing that she had deserved a raise and had not received it. Her actions could also be construed as a form of revenge for not receiving what she believed was fair compensation.

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d. What Internal Control procedures should be put into place?

Most notably, Fairwell needs better separation of duties. Terry's ability to process terminations, approve timecards and distribute paychecks leaves the company with a poor set of checks and balances for payroll controls. The company should also implement better monitoring procedures to prevent fraud as indicated by Terry's high degree of confidence that she would not get caught. More frequent, unannounced spot audits might dissuade employees from….....

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