Narrative 15-2
The Alberta Motor Association (AMA)suffered significant losses due to fraud between January 2013 and June 2016. The organization's vice-president of information technology was charged with fraud for allegedly misappropriating as much as $8.2 million. AMA "has reviewed its financial processes and has put in place additional controls to prevent any future incidents of this type." The fraud was discovered when the alleged perpetrator advised AMA that he had hurt his leg,and needed to work more from home;unfortunately,he didn't attend required meetings,which triggered a meeting with the organization's chief operating officer and was placed on disability leave in June 2016.
-Refer to Narrative 15-2. It appears that the control method AMA believed it should have used was one that focused on whether rules and policies were being followed. Which of the following defines this approach?

Question

Quizplus · Accepted Answer

Bureaucratic control focuses on rules, policies, and procedures to regulate behavior and ensure that they are being followed. This type of control method would have likely detected the fraud earlier and prevented it from continuing for such a long period. AMA's implementation of additional controls after the fraud highlights their desire to implement a bureaucratic control approach to prevent similar incidents in the future.