Question

A company may need to undertake an internal investigation into alleged employee fraud for which of the following reasons?

a. To mitigate the company's vicarious liability for the wrongful conduct
b. To determine the source and amount of loss
c. To guard against wrongful termination accusations
d. All of the above

Answer 1

An internal investigation into alleged employee fraud may be necessary for multiple reasons, including to mitigate the company's vicarious liability, determine the source and amount of loss, and guard against wrongful termination accusations.

Step-by-step explanation:

An internal investigation into alleged employee fraud may be necessary for multiple reasons, including to:

1. Mitigate the company's vicarious liability for the wrongful conduct
2. Determine the source and amount of loss
3. Guard against wrongful termination accusations

These reasons are all valid because they address different aspects of dealing with employee fraud. Conducting an internal investigation helps the company take appropriate action, protect its reputation and resources, and ensure compliance with legal and ethical standards.