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April/May 2021 » Considering the Longer-Term Effects...
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Scot E. Justice, DBA, CPA, and Dana R. Hermanson, PhD
In BriefWhat does management do when a star employee violates company policy? If management lets a star employee get away with such violations, how will this affect average employees? The authors published an academic study examining these issues in 2018; in this article, the authors discuss its implications for CPAs. In the long term, lenience with star employees can lead to average employees being more likely to get away with similar ethical violations, greatly weakening the control environment and increasing fraud risk.
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