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5 pts You are the newly hired controller of Wright's Gourmet, a bakery and sandwich shop in South Tampa. Mrs. Wright currently owns 100% of

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5 pts You are the newly hired controller of Wright's Gourmet, a bakery and sandwich shop in South Tampa. Mrs. Wright currently owns 100% of the company and is chairman of the board, but has semi-retired. Key management positions are currently held by her family members, and her son is acting as the CFO (and is your direct boss!) As a key member of the accounting team, you have discovered that some employees are being paid cash at the end of each day, rather than through the formal payroll process. You suspect that some of these employees are being employed illegally. and you have no records of their formal employment, social security numbers, or documentation that they are independent contractors. When you discuss this with the CFO, he tells you not to worry about it. Furthermore, when you review the cash account, you see several cash withdrawals from the operating account for large amounts each week that have been authorized by the CFO. When you review the journal entries related to these cash withdrawals, all are classified as "Prepaid Salaries". 1. Is the CFO violating any of the IMA Standards of Ethical Conduct? Discuss and be specific 5 pts You are the newly hired controller of Wright's Gourmet, a bakery and sandwich shop in South Tampa. Mrs. Wright currently owns 100% of the company and is chairman of the board, but has semi-retired. Key management positions are currently held by her family members, and her son is acting as the CFO (and is your direct boss!) As a key member of the accounting team, you have discovered that some employees are being paid cash at the end of each day, rather than through the formal payroll process. You suspect that some of these employees are being employed illegally. and you have no records of their formal employment, social security numbers, or documentation that they are independent contractors. When you discuss this with the CFO, he tells you not to worry about it. Furthermore, when you review the cash account, you see several cash withdrawals from the operating account for large amounts each week that have been authorized by the CFO. When you review the journal entries related to these cash withdrawals, all are classified as "Prepaid Salaries". 1. Is the CFO violating any of the IMA Standards of Ethical Conduct? Discuss and be specific

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