Joko Saputra owns and manages Joko’s Restaurant, a 24-hour restaurant near the city’s medical complex. Joko employs 9 full-time employees and 16 part-time employees. He pays all of the full-time employees by check, the amounts of which are determined by Joko’s public accountant, Acha Uwais. Joko pays all of his part-time employees in currency. He computes their wages and withdraws the cash directly from his cash register.

Acha has repeatedly urged Joko to pay all employees by check. But as Joko has told his competitor and friend, Iko Mahaffey, who owns the Senang Diner, “My part-time employees prefer the currency over a check. Also, I don’t withhold or pay any taxes or worker’s compensation insurance on those cash wages because they go totally unrecorded and unnoticed.”

Instructions
a. Who are the stakeholders in this situation?
b. What are the legal and ethical considerations regarding Joko’s handling of his payroll?
c. Acha Uwais is aware of Joko’s payment of the part-time payroll in currency. What are her ethical responsibilities in this case?
d. What internal control principle is violated in this payroll process?