In relation to the following scenarios explain why it is a breach of ethics and what steps
Question:
In relation to the following scenarios explain why it is a breach of ethics and what steps could have been taken to avoid the issue:
(a) The son of the accountant of a company is employed during the university holiday period to undertake work associated with preparation for a visit of the auditors.
(b) A senior executive is given a first-class seat to travel to Chicago to attend an industry fair where the company is launching a new product. The executive decides to cash in the ticket and to get two economy-class tickets so her boyfriend can go with her. The company picks up the hotel bill and she reimburses the difference between what it would have cost if she went alone and the final bill. The frequent flier points were credited to her personal frequent flier account. Would it make any difference if the company was not launching a new product at the fair?
(c) You pay a sizeable account for freight on the internal shipping of product deliveries in an underdeveloped country. At morning tea, the gossip is that the company is paying bribes to a general in the underdeveloped country as protection money.
(d) The credit card statement for the managing director includes payments to a casino. The managing director says it is for the entertainment of important customers.
(e) You are processing a payment for materials which have been approved for repairs and maintenance when you realise the delivery is not to one of the business addresses of the company.
Step by Step Answer:
Financial Accounting And Reporting
ISBN: 9781292255996
19th Edition
Authors: Barry Elliott, Jamie Elliott