Ethics Questions Think about Calvin Indiana, the Internal Auditor for the Violet Bay School District. Indiana repeatedly brought the problems with budget controls and potential budget deficits to the Super- intendent's and the Audit Committee's attention and was ignored. Indiana knew that the Superin- tendent was not following his fiduciary responsibilities when it came to spending guidelines or reporting information to the Board and, in fact, authorized budget transfers to disguise financial problems and funding shortfalls. 4. The Internal Auditor reported on more than one occasion problems with the budget process to the Superintendent and Audit Committee and his reports were ignored. What ethical dilemma does this create for the Internal Auditor?

5. What parties are affected by this ethical dilemma and how are they affected?

6. What alternatives does the Internal Auditor have to resolve this dilemma, and what are the consequences of each alternative?

7. The Internal Auditor eventually resigned over his concerns. Based on the possible alter- natives and consequences, what do you think Indiana should have done?