RWP4-6 Between his freshman and sophomore years of college, Jack takes a job as ticket collector at a local move theatre. Moviczoers purehase a ticket from a separate employee outside the theatre and then enter through a single set of doors. Jack takes half their ticket and they proceed to the movic of their choice. Betidei trying to earn enough money for college the next year, Jack loves to watch movies. One of the perks of working for the movie thestre is that all employees are allowed to wateh one free mowie per day. However, the employee handbook states that friends and family of eriployees are not allowed to wateh free movies. In addition, employees must pay full price for all concession items. Soon after starting work at the theatre, Jack notices that most other employees regularly bring their friends and family to the mowie without purchasing a ticket. When Jack atops them at the door to ask for their ticket, they say, "Jack, no one really follows that policy. Just be cool and let us in. You can do the same." Jack even notices that upper management does not follow the policy of no family and friends watehing free movies. Furthermore, employees commonly bring their own cups to get free sof drinks and their own containers to eat free popcorn. Jack considers whether he should also start bringing friends and family and enjoying the free popcorn and beverages. He reasons, "Why should I be the only one following the rules? If everyone else is doing it, ineluding upper management, what harm would it be for me to do it too? After all, when you wateh a mowie, you aren't really stealing anything, and popcorn and drinks cost hardly anything. Plas, I really need to save for college." Instructions: Write a memo to movie theatre management from your own perspective as a consultant of the company. You will first want to gather your thoughts regarding the ethical dilemma, the elements of the fraud triangle that are present, and a future plan to minimize the likelihood that a fraud will take place. Deliverable (what you will turn in): 1. a formal, professional memo from the consultant (i.e., you) to management (1-2 full pages, single-spaced, and typed). Be sure to include each of the following: Help management understand the ethical issue from Jack's perspective. Describe the ethical dilemma that Jack faces. What is the issue? Who are the parties involved? If you were Jack, what would you consider when making a decision? Help management understand the elements of the fraud triangle in this situation which increase the chances of fraud. Why is this fraud? What are the opportunities, motivations and rationalizations that you see? How does this affect the business financially? Help management come up with a plan to minimize the likelihood of this happening in the future. Be sure to mention specific components of the COSO framework
