The Anonymous Caller

Case 3.3: The Anonymous Caller

1a. Based on the fact that this is the first time on record that the company has put false transactions on the books yet the managers are saying this happens all the time is a red flag to me. I would recommend removing yourself from the situation, and if that meant leaving the company then that is the answer.

b. If the person was to remain with the company there are many risks. If the company was audited and it was found that the transactions happened under his management, than management can point the finger at the person responsible for those entries.

c. If you were to resign immediately there are also risks involved. It could be looked at, as you were responsible for the entries. If this were to happen, finding another job would be difficult.

d. I think that the state board of accountancy could be sources of advise, but I think they would be very straight forward and by the books.

2. From an ethical standpoint, the caller has responsibility to let the bank know what is going on. There are risks involved if the caller is inaccurate. The bank can call the company out on the error and then they would know who was the “rat” inside the company and the call would most likely lose their job

3a. I feel that the external auditors are the only other people relevant to contact about this situation. By contacting them, you can find out if this is a common practice like the managers are saying, and also you can verify that this is the first time this is happening.

b. The concern I have is that if you were to notify them, you might be getting in trouble as well since you are the controller.

4a. I think this is a common practice. Companies can use projections and other types of fake data to fool banks all the time. I also think that it is the banks job and responsibility to make sure that the information they are being provided is correct.

b. The common pressures used are obviously firings. If you don’t go along then you will...