Discuss examples and cases of information check and balance

Discuss examples and cases of information check and balance systems or data cross reference that can provide organizational transparency of unethical behavior?

Solution

Checks and balances enable in keeping the financial sectors honest and the large publicly held companies in operating responsibly. Checks and balances help make an honest and accurate organization and establish trust and productivity

Checks and balances help keep organizations and departments honest by filtering information through many different persons and parties. Financial and accounting departments use several kinds of checks and balances to lessen the quantum of fraud and inaccurate information. Checks and balances prevent persons or small parties from tampering with official figures and gaining from the \"error\". Many organizations use a mechanism of multi-department authorization for final figures and, in several cases, need the signature of the CEO. Financial integrity is an essential part of business; all businesses should rely on a correct ledger to operate efficiently. An honest financial system is also essential in securing the trust of investors.

Bigger corporations are operated mainly on a system of checks and balances. To keep the firm running in a way that is aligned to stockholders\' and management\'s designs, department heads should adhere to a hierarchy. Decisions that are taken follow through an approved chain of command which supports the decisions based on the firm\'s goals