Like I said I work from home so this isn't theoretical my entire organization works from home so that's also not theoretical even the ones that are local to the office work from home most days of the week. So I know that you're all suspicious but most people actually do work. Because what happens when you don't do your work is that the work of your office or your company doesn't get done. And people can notice that. If your boss tells you that you need to do an analysis of a certain event or topic whatever and it has to be done by in two weeks and you don't turn it in in 2 weeks then they know you haven't done your work.

In fact working from home what typically happens is you are able to work without boundaries there is no time that you have to get up and commute or go to the Subway or take a train or whatever it is you work until. It doesn't need to be tracked people are responsible. Of course there are people that will flake off but you know those are the same people that would have a poor work ethic even if they were in the office. Just because you switch locations doesn't mean that you can't still be a slacker and that's down to personal choice not because you work from home.