What is your assessment of the company’s new policy?

During the past 2 years, audits have identified declining profits for your company. Management suspects employee theft, but they are unsure of what to do and are worried about additional costs. Employees work two shifts from 7 a.m. to 4 p.m., and from 3 p.m. to 12 midnight, 5 days per week. Employees are permitted to go out to eat lunch for an hour. A total of 400 employees are divided as follows: 100 widget operators, 15 transportation specialists, 40 packers, 25 maintenance personnel, 25 material handlers, 20 miscellaneous workers, 10 retail salespeople, 10 managers, 5 security guards, and 20 clerical and account support members. A contract cleaning company cleans the building 3 days a week, during the week, after midnight when the building is closed. The garbage dumpster pickup is 3 days a week in the early morning, prior to the building opening. One physical inventory is conducted twice a year for the entire company.There are various indicators for internal theft, such as inventory records and physical counts that do not reconcile; discrepancies in accounting, receiving, and discharge records; increased amounts in supplies needed to operate the company and produce goods; and missing items, materials, and merchandise. Inoperable security devices, unsecured areas of the building such as windows, doors, lockers, and so forth, are also a concern. Lastly, there are many instances of the presence of workers in unauthorized areas. To address the problem, the company has issued a new policy by which employee bags are checked by the security desk upon leaving the premises. Only one bag can be brought in per person. Security will also check bags at distribution and store locations. Trucks will be inspected prior to leaving the work site.•What is your assessment of the company’s new policy? •Does this response adequately address the problems? •What modifications would you recommend?