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Noah, a sales manager at TheRobotics Company, frequentlytravels to potential clients acrossthe United States to...

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Accounting

Noah, a sales manager at TheRobotics Company, frequentlytravels to potential clients acrossthe United States to help sell thecompany's products and services.

Because of his frequent trips,Noah developed personalrelationships with several localindividuals. He regularly dined outwith them at expensiverestaurants and submitted claimsfor expense reimbursementfor "business-related meals."Noah accumulated $10,000 worthof fraudulent expenses over twoyears by spending outrageousamounts on food and even up-charging the amount before

submitting expenses to get moremoney in his pocket.As time went on, Noah bragged tohis colleagues about "gettingaway" with his expense abuses,justifying that the meals are extracompensation for his stressfultravel schedule.

The senior leadership teamlearned of the fraud a few weeksafter colleagues heard about hisexpense abuses. The teamconfronted Noah and promptlyterminated him.

Questions:
What went wrong in theorganization's structurethat allowed the issue tooccur?



What is yourrecommendation(s) thatthe organization canfollow to prevent thisactivity from occurringagain?

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