The case of snitch Case Study Solution
Abstract
The case illustrates the ethical dilemma running in a company under the sales department. The new finance assistant has been hired with the CPA license to work in an audit firm. The Individual has identified the fraudulent activity under the sales department and has picked a trend for the last one years of having the false expanse receipts which went from $200 to $400 but remained under $25 per receipts to overcome or avoid the admission of the reimbursement slip.
On the other end, the individual has been known to the facts that occurs to the whistle blower in an organization and the hardships to get the right job previously. These constraints has made the choice difficult for the finance assistant to choose from doing nothing to inform the supervisor or to offer an anonymous hotline report.
Analysis
What criteria you are going to use as you determine the path of actions which can range from doing nothing to informing the supervisor or offering an anonymous report to the management?
The Baird Decision Making Model:
Step: 1- Be attentive
In order to blow the whistle in the organization the criteria to use will be the ethical conduct violation that can be treated under the fraudulent activities in the organization.Since im a CPA certified public accountant.It is my responsibility to identify and pinpoint the fraud going in the sales team by the top sales representative.In doing so, I would use the ethical conduct policy of the organization and on the basis of those guidelines will analyses the performance and actions of the top sales representative. Also, before involving the management in the matter, i would seek the action list of the same sales representative for over the five and would compare it with others sales representative to identity and authentify the findings.
Step:2- Be Intelligent
Since the trend can be challenged or covered by the individual through different supportive evidences, I will gather the slips or expense list of the other sales representatives, the second highest performers and the expense slips prior onto the fraudulent past years. This will make the evidences strong since the type of expense remain same throughout the department.
Step: 3- Be reasonable
In order to appear reasonable before the management, I would gather the similar expense sheets old and new to verify of the expenses are valid or not. The comparison with the old and other lists will allow to validate the finding and the change in the expense list will be verified easily.
Step: 4- Be responsible
Since i will be using the third option of offering an anonymous repost to the management outlining the change in the expense list for the last one year.in doing so, I will offer the crisp report outlining the fraud or expense change list and the similar expenses incurred by other sales personals, this will blow the whistle in the management team and will offer the eye opening situation to the management.
Step: 5- Return for Awareness
Since the situation represents more of a ethical misconduct in the finance and account department and also represent the leniency and inability to identify the trend, would carry the same research for the others sales personals as well, which may offer a more clear picture of the trend manipulation or expanse manipulation and may strength the results which I will email to the management under the anonymous ID.
Conclusion
Since the ethical misconduct is a serious crime in the organization requires to be addressed immediately, the audit team needs to be proficiently equipped with the ethical guidelines to identify and pinpoint the type of ethical misconduct running in the organization and to decide the right whistle blowing technique in the organization that saves the integrity of the whistle blower and the organization both. It also need to be reminded, that since the whistle blowers are not generally guarded or treated fairly, and often labeled as Snitch, the right and smart path to inform the management is important, which on one hand serves the cause while on other hand saves the position of the individual in the organization. (CAPAM Featured Report, 2010)...................
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