[Warren] Tehra Dactyl is an accountant for EGGS, Inc., a footwear and apparel company. The company's revenue and net income have increased by more than 100% over the past three years. During the same period, Tehra and her colleagues in the accounting department have not received a raise or salary increase. Frustrated by not receiving a raise while the company has thrived, Tehra has begun submitting expense reimbursements for personal purchases. Tehra has a good relationship with her supervisor, and he simply signs off on Tehra's expense reimbursements. Tehra suspects that he knows that she is submitting personal expenses for reimbursement and is looking the other way because Tehra has not received a raise in the past three years.

[a] Are Tehra and her supervisor acting in an ethical manner? Why?

[b] Who are the stakeholders here?

[c] Discuss this in the context of fraud risk.

[d] Discuss this in the context of COSO elements of internal control.