According to Hollinger and Clark for Policy development, management must pay attention to:
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A. B. C. D.C
Hollinger and Clark developed a framework for fraud policy development that emphasizes the importance of management's attention to certain key areas. The answer to the question is C - Both A & B.
A) A clear understanding regarding theft behavior: Management should have a clear understanding of theft behavior to be able to identify potential fraudulent activities in the organization. It is important for management to know what constitutes theft, the various forms of theft, and the signs of potential theft. A clear understanding of theft behavior can help management to develop policies and procedures that address potential fraudulent activities.
B) Enforcement of sanctions: Enforcement of sanctions is crucial for deterring fraud in an organization. Sanctions can range from disciplinary actions to legal prosecution. It is important for management to have a clear understanding of the consequences of fraudulent behavior and to communicate these consequences effectively to all employees. Management must also be committed to enforcing these sanctions consistently to deter future fraudulent behavior.
In summary, both A and B are important considerations for management when developing policies to prevent fraud in an organization. A clear understanding of theft behavior can help management to identify potential fraudulent activities and develop effective policies and procedures. Enforcement of sanctions is also crucial for deterring fraudulent behavior and maintaining the integrity of the organization.