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Let's assume you were hired as an accountant of Excellent Company. After examining the company's financial records, you found out that the CFO of the
Let's assume you were hired as an accountant of Excellent Company. After examining the company's financial records, you found out that the CFO of the company has been falsifying financial statements by creating fictitious revenues that amounted to $1.6 billion. This means that the company has been intentionally overstating their revenues than the actually earned revenues so that the officers would get compensated financially for their performance. Now, you are faced with ethical dilemmas. Should you stay quiet because you are new to the company and you feel under pressure? Or should you whistle blow, in other words revealing fraud to the public/private parties? Your action may cause the company to collapse and employees including yourself might lose a job. Sometimes, when faced with ethical dilemmas, none of the options are great but you need to choose the best course of action and pursue that. Based on the scenario above, please answer these two questions in 200-250 words: 1. What would you do? 2. How could have the company prevented fraud from happening? For full credit, you MUST address at least three ways the company could have mitigated fraud risks in this specific situation.
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