The case regarding Fashion First is a very interesting case as it allows for a discussion to take place in relation to ethics. Ethics could be defined as moral principles that govern a person’s or group’s behavior. In other words, ethics allow for individuals to distinguish between right and wrong, and to make decisions based on what is right or wrong for any particular situation. In this situation, Sandy, the part-time bookkeeper of Fashion First is approached with a situation where she noticed that $500 cash was missing from each deposit while she was looking through weekly deposit chats.
After a more thorough inspection of the monthly tax documents that the owner of Fashion First, “Buzz” Thompson (her manager) filled out, she noticed that the monthly gross revenue was $2,000 less than what had actually been counted. After she approached “Buzz” Thompson about the scenario, “Buzz” asserted that she shouldn’t be concerned since she wasn’t the person who signed the forms. This brings up an ethical dilemma that allows for a discussion on what the “right” thing to do is, and how morals could affect the decision made by Sandy.
This case is very interesting due to the fact that Sandy is only an intern who is an accounting student at a University. Heather Hunter, a Senior in the CPA firm, was one for Sandy to go to if in need of anyone to talk to or attain advice from for anything regarding the company. Sandy mentioned to Heather her knowledge of unlawful actions regarding Fashion First. Sandy’s concern related to the handling of sales revenues, as monies are counted and deposited on a weekly basis as a chart is filled out with categories carefully delineating the type of payment: cash, checks, American Express, or Visa/Mastercard.
She would bring her chart to her employer (in this case Mr. Thompson) and her employer would bring his own written in total of the actual amount deposited on his own chart, basically comparing the two charts. The issue in this case of apparent fraudulent behavior completely disregards the IMA Statement of Ethical Professional Practice and its principles. This IMA Statement follows the principles of honesty, fairness, objectivity, and responsibility, and if any member fails to comply with the following standards may result in disciplinary action.
Mr. Thompson clearly fails to comply with the standards of the IMA Statement in many ways. In regards to competence, “Buzz” fails to “perform professional duties in accordance with relevant laws, regulations, and technical standards” and fails to “provide decision support information and recommendations that are accurate, clear, concise, and timely. ” The amounts in his chart are low in comparison to the chart calculated by Sandy; therefore the information is inaccurate, and not concise, as it is against the law.
In regards to confidentiality, it is mentioned to “refrain from using confidential information for unethical or illegal advantage. ” Mr. Thompson does the complete opposite as he illegally mistakenly counts $2,000 less than what had actually been counted in Sandy’s chart. This is “illegal advantage” as that $2,000 is in his pocked at the end of the day. In regards to Integrity, Mr. Thompson disregards the responsibilities which read: “refrain from engaging in any conduct that would prejudice carrying out duties ethically” and abstain from engaging in or supporting any activity that might discredit the profession.
” It is obvious that what he is doing is illegal, and that it “discredits the profession. ” In regards to credibility, Mr. Thompson does not “communicate information fairly and objectively,” as he tells Sandy that she shouldn’t be concerned since she isn’t the one who signed the forms. This is unethical behavior by “Buzz” Thompson, and Sandy did the right thing by approaching him in regards to the situation.