When Management Override Negates Common Sense

Abstract

Write “OK per big boss” across the invoice and everything is fine! Or is it? This paper analyzes the human factor link related to the Debra Valice Case. The human factor is the weakest link of any internal control system. Understanding the human factors that cause people to “not follow the rules,” is key to strengthening this link. This research will utilize the human factors adapted from the Independence Education Program to analyze the Debra Valice Case. Valice was responsible for ensuring a secure internal control system. The Chief Executive Officer was able to manipulate this system and unauthorized payments were made to him or on his behalf. Valice’s lack of good judgment allowed this to happen. The human factors allowing this breach were professional character, business culture and environment, the ability to recognize there is an issue and the quality of the decision-making process as outlined by the Independence Education Program.