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Diana is a college graduate with accounting as her major and is planning to take the CPAexam. She recently accepted the Staff Accountant's position with

Diana is a college graduate with accounting as her major and is planning to take the CPAexam. She recently accepted the Staff Accountant's position with the ZZ Cinema Franchise.There are 20 theatres that are owned by the Franchise in a widely spread geographic area.

John is manager of all the locations of the theatre franchise and William, distantly related tohim, is the Assistant Manager working solely at his location. Jodi sells tickets from a glasscage and collects the cash from patrons. At the end of the last show, he adds up the cashreceipts, reconciles his sales and hands over unsold tickets and cash to William. Bob, thedoorman, collects the tickets from incoming patrons, tears the tickets into two, hands overone to the patron and drops the second half into a little locked box which William picks up atthe end of the day. William prepares the bank deposit slip, deposits the cash in the bank, andkeeps the bank receipts and the unsold tickets in the office safe to which he has the only key.William also prepares the bank reconciliation statements and submits weekly sales reports toDiana.

Of late, William has volunteered quite frequently to speed up ticket sales on crowded daysby working Jodi's station at the sales counter. John has not objected to this practice. Duringthe past month William has been seen driving a fancy new Lexus to work and seen diningwith an attractive blond at the town's expensive restaurants. Diana finds from William'sreports that sales have shown no change from previous weeks, even though there appears tobe an obvious and significant increase in movie theatre attendance during the summerseason. This puzzles Diana, who suspects this apparent discrepancy is being pocketed byWilliam. More puzzling, why hasn't John also noticed this problem? Diana wonders if sheshould report her suspicions to someone in authority. After all, she has no proof. Moreimportantly, should she go to John? He might be involved in this possible scam. Whatshould she do?

General Discussion Questions:

1.Ethical Considerations:

a.Does Diana have an obligation to protect the interests of the franchise owners?

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