List and discuss the components of an effective fraud prevention program. Discuss in which department it should be housed, providing a rationale for that decision. Also detail the reporting of fraud to leadership and external auditors.

C. Discuss the deterrence of fraudulent activity by examining the role of the human resource department, the prosecution of fraudsters, and the recovery of defrauded assets from fraudsters.

D. If you were to develop an effective and efficient whistleblower hotline program, what components would it entail? Include in your program the hotline name, how it would be set up and accessed by employees, basic questions you would ask callers, and how information gleaned from the calls would be categorized, reported and investigated. Be sure to explain the rationale behind your decisions.

E. Whistleblowers Sherron Watkins from Enron and Cynthia Cooper from WorldCom both gained national attention and were protected after becoming whistleblowers at their respective organizations. However, not all whistleblowers are as fortunate. Read about one whistleblower named David Welch in the following short articles:

(attached)
Risk Management: For Financial Whistle-Blowers, New Shield is an Imperfect One…
Take This Job
Trials of a CFO Whistle-Blower
Cardinal of Va. Told to Reinstate Ex-CFO

David is the first test case for the Sarbanes-Oxley whistleblowing requirements. Discuss his dilemma and explain whether or not you think the whistleblowing portion of the Sarbanes-Oxley Act has any teeth or whether it needs revision.