Robert Eberle owns and manages Roberts Restaurant, a 24-hour restaurant near the citys medical complex. Robert employs 9 full-time employees and 16 part-time employees. He pays all of the full-time employees by check, the amounts of which are determined by Roberts public accountant, Anne Farr. Robert pays all of his part-time employees in currency. He computes their wages and withdraws the cash directly from his cash register. Anne has repeatedly urged Robert to pay all employees by check. But as Robert has told his competitor and friend, Danny Gall, who owns the Greasy Diner, My part-time employees prefer the currency over a check. Also, I dont withhold or pay any taxes or workers compensation insurance on those cash wages because they go totally unrecorded and unnoticed.

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After reading the above information, answer the following questions:

1. Who are the stakeholders in this situation?

2. What are the legal and ethical considerations regarding Roberts handling of his payroll?

3. Anne Farr is aware of Roberts payment of the part-time payroll in currency. What are her ethical responsibilities in this case?

4. What internal control principle(s) is(are) violated in this payroll process?