What is necessary for management when applying corrective actions for fraud?

Management's application of corrective actions for fraud must emphasize consistency for all involved individuals to ensure fairness and maintain organizational integrity. Consistency in applying measures helps to uphold the principles of justice and promotes trust among employees. When every case is addressed using the same standards, it minimizes perceptions of bias or favoritism, which can undermine morale and encourage further unethical behavior.

Additionally, consistency in corrective actions also aids in the development of clear policies and procedures. This standardization can help prevent future fraud by establishing a culture of accountability, where all employees understand the consequences of their actions. Consistent consequences signal to all employees that fraudulent behavior, regardless of the offender's status within the organization, will be addressed seriously.

In contrast, personal judgment on each case could lead to subjective decisions that may vary based on the manager's discretion, possibly resulting in unequal treatment. Immediate public disclosure may be important in some contexts but is not necessary for all fraud situations and could lead to reputational harm. A focus on major offenders alone ignores the broader issues and patterns of behavior that contribute to a culture of fraud, potentially allowing other issues to persist unaddressed.