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What are the short and long term consequences of not reporting the embezzlement in the work papers?
Wiki User
∙ 9y ago
Embezzlement can devastate a company. The longer it goes undiscovered, the more damage it causes the business and it's employees. Embezzlement means the company is going to suffer losses of cash and other assets. These losses go directly to profit and if a company does not profit it can not sustain a work force, so jobs are cut. Cuts are taken against inventory and production which means less inventory to sell. It becomes a downward spiral. For employees it also means a working atmosphere that is tense and full of mistrust. Other companies that do business with this company may also pull away. Embezzlement can give a business a bad reputation, and eventually bring the company down.
Embezzlement is a crime. For all of the above reasons and more, if you know something, you should find a way to report it.
Wiki User
∙ 9y ago
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