Moyer Instruments is a rapidly growing manufacturer of medical devices. As a result of its growth, the company's management recently modified several of its procedures and practices to improve internal control. Some employees are upset with the changes. They have complained that all these changes just show that the company no longer trusts them. Required: "Internal controls exist because most people can't be trusted." Is this true? Explain.

Question

Reynaldo Zamora

Engineering

3 July, 18:19

Moyer Instruments is a rapidly growing manufacturer of medical devices. As a result of its growth, the company's management recently modified several of its procedures and practices to improve internal control. Some employees are upset with the changes. They have complained that all these changes just show that the company no longer trusts them. Required: "Internal controls exist because most people can't be trusted." Is this true? Explain.

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Rayne Finley · Answer 1

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Explanation:

It is not true and the establishment of the internal control system has nothing to do with trust issues. The establishment of effective internal control is must to move the activities in line with the goals and objectives of the company. Some of the relative arguments in this matter is given below:-

(1) The effective internal control system is the best measure to remove irregularities in the organization.

(2) In the spirit of the professionalism, the employees must appreciate the changes to improve the operational procedures in the organization. If they are right on their parts and responsibilities then there is no need to react to such changes.

(3) Moreover, The personal issues and views of employees can never be entertained against the interest of the organization.

Note: The employees are obliged to work for the organization in objective and professional terms. Talking about trust issues is totally immaterial in professional manner.