Ethics and Short-Term Borrowing (LO5)

Ashley, an administrative assistant, is in charge of petty cash for a local law firm. Normally, about $500 is kept in the petty cash box. When Ashley is short on cash and needs some for lunch or to pay her babysitter, she sometimes takes a few dollars from the box. Since she is in charge of the box, nobody knows that she takes the money, and she always replaces it within a few days.

Required

a. Is Ashley’s behavior ethical?

b. Assume that Ashley has recently had major problems meeting her bills. She also is in charge of purchasing supplies for the office from petty cash. Last week when she needed $25 for the babysitter, she falsified a voucher for the amount of $25. Is this behavior ethical?

 (p. 24)