CONTROLS
After the court verdict that Lewis group must refund the clients they illegally sold insurance to, the company’s CEO Johan Eslin explained “our IT systems included coded controls which excluded loss of employment insurance cover from being selected as an option to sell for certain categories of customers, our investigation revealed that mistakes occurred during the process of entering the client’s employment status details into the system” .
Control is a process of minimising non-adherence with standards and ethics in a manner that involves managerial functions like staffing, organising, directing, and planning. Control minimises and also manages risks by means of countering errors made by departments in management, also enhances …show more content…
Human error is any act done by any human being without intent. The CEO reports that the coding done by their I.T department led to all the mis-selling of these unethical policies whilst some stakeholders regard this the act as a scheme. A partner at summit Financial Partner said that there is no way in many years that the act by the Lewis group was a Human error,(Dare Woollan, 2015:1). This gives rise to the fact that the clients were compelled to take the insurance and had no choice, even the sales people also agreed to this. If the statement issued by the CEO of the company is true, that means that the internal control of the company is dysfunctional in some way especially when being referred to the definition of Control and ethics because on their Integrated report Lewis states that they have committee’s and procedure that are put in place for assurance of proper internal control like the board charter, a governance structure, audit committee, risk committee, social, ethics and transformation committee, and the king …show more content…
The Board committee did not carry this task effectively as the error that the CEO made in his statement was because of inadequate internal control. The lack of internal control has led to the company being fined millions of Rands as stipulated above. They are also responsible for monitoring ethical conduct by the company as well as its directors and officers. They also ensure the regulatory compliance but the lack of control systems led to the laws by the Nation Credit Regulator (NCR) being infringed. The Board has missed carrying some of their important tasks and because they are in the top level management, the actions could poor internal control could disturb the whole company in terms of ethics and standards adherence as we have also seen the conviction made by NCR to the
After the court verdict that Lewis group must refund the clients they illegally sold insurance to, the company’s CEO Johan Eslin explained “our IT systems included coded controls which excluded loss of employment insurance cover from being selected as an option to sell for certain categories of customers, our investigation revealed that mistakes occurred during the process of entering the client’s employment status details into the system” .
Control is a process of minimising non-adherence with standards and ethics in a manner that involves managerial functions like staffing, organising, directing, and planning. Control minimises and also manages risks by means of countering errors made by departments in management, also enhances …show more content…
Human error is any act done by any human being without intent. The CEO reports that the coding done by their I.T department led to all the mis-selling of these unethical policies whilst some stakeholders regard this the act as a scheme. A partner at summit Financial Partner said that there is no way in many years that the act by the Lewis group was a Human error,(Dare Woollan, 2015:1). This gives rise to the fact that the clients were compelled to take the insurance and had no choice, even the sales people also agreed to this. If the statement issued by the CEO of the company is true, that means that the internal control of the company is dysfunctional in some way especially when being referred to the definition of Control and ethics because on their Integrated report Lewis states that they have committee’s and procedure that are put in place for assurance of proper internal control like the board charter, a governance structure, audit committee, risk committee, social, ethics and transformation committee, and the king …show more content…
The Board committee did not carry this task effectively as the error that the CEO made in his statement was because of inadequate internal control. The lack of internal control has led to the company being fined millions of Rands as stipulated above. They are also responsible for monitoring ethical conduct by the company as well as its directors and officers. They also ensure the regulatory compliance but the lack of control systems led to the laws by the Nation Credit Regulator (NCR) being infringed. The Board has missed carrying some of their important tasks and because they are in the top level management, the actions could poor internal control could disturb the whole company in terms of ethics and standards adherence as we have also seen the conviction made by NCR to the