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Suzette Washington
Accounting Case

Ethical Decision-Making:
Suzette Washington, Accounting Major

A profession that exists to

serve the public must assure
that
its
services
are
performed at the highest
level of quality, integrity and
independence.

II. Background of the Issue

Comics

III. Suzette: Ethical Choices

Ethical Dilemma

Whistleblow

VS

Ignore

Whistleblow
To whistle blow by reporting
the alleged theft of Alex and
Matt to the management,
and inevitably damage the
twos career.

Ignore
To ignore the matter and wait
until the management could
discover and prove the
offence of Alex and Matt by
themselves.

IV. Applying the Ethical Framework

A. Identify the Ethical Issue
Bertolinis
began
experiencing
abnormally high inventory shrinkage
in the stores three departments that
stocked mens apparel. Suzettes
supervisor,
an
assistant
store
manager, confided her that he
believed one or more of the sales
clerks were stealing merchandise.
Suzette
happens
to
gather
information about the theft of Matt
and Alex. Should Suzette provide this
rumour to her supervisor?

B. Determine who are the affected

parties and identify their rights.
Affected Parties
Rights
Suzette And Paula
Right to remain silent
Manager (Suzettess Supervisor) Right to receive
information
and not be denied
information that others
received.
Matt and Alex
Right to be investigated with
due process of law.
The Accounting Profession
Rights to expect all
its
members to uphold the Code
of Professional Conduct and
to take actions that enhance
the
general reputation and
perception of
the integrity of
the profession.


C. Determine the most important rights.
The analysts assessed that the most
important rights (arranged from most to
least) are:
The fact that the allegation is only a
rumour, Suzette and Paula has the right to
appear unknowledgeable of the case.
Management have the right to know any
sign of fraud that may deviate the
operations of the business.
Alex and Matt, to be treated presumably
innocent as the investigation will be
conducted.
The profession to retain its reputation for
trust and assurance that effective work

D. Develop alternative courses

of action
The possible courses of action
are:
1. To whistle blow and disclosed
the allied misappropriation of
inventory
between
the
employees.
2. To
ignore
and
possibly
rationalize that the issue is
just a rumour.

E. Determine the likely consequences

Whistleblow

Ignore the matter

Whistleblow
Revealing the acts of Alex and Matt
with lacking evidence may cause
career damage for these employees.
On the other hand, things in sides of
Suzette and Paula will get complicated
because of investigation proceedings
that will be conducted. Also, in case
after the investigation the suspects
will be found not guilty, Suzette as an
Accounting major will suffer stained
reputation. Furthermore, Alex and Matt
may take actions against Suzette and
Paula as a revenge brought by the

Ignore the matter

If not made known to the
management, the business might
suffer continuous losses from
inventory shrinkage due to theft.
In addition, if the suspects after
due process are found guilty, and
the management found that
Suzette has knowledge about it,
she may suffer shared charges,
and of course a deviation from
her reputation, as an accounting
major.

F. Assess the possible

consequences and estimate
the greatest good for the greatest
number
Sharing
the
information
to
the
management may help them to resort
into action to prove the reliability of
this information. This action should be
placed as early as possible, so that
further theft would be prevented.
Knowledge of the management in this
information would also imply that
internal control should be reviewed and
improved
and
additional
control
activities should be implemented.

G. Decide on the appropriate

course of action
It is appropriate that Suzette
should share the information to
the management. This would help
not only the management to
improved the business policies
and management, but also on the
side of the thieves for avoiding the
likelihood of greater possibility of
fines if the allied theft will
continue for a longer of time.

H. Findings
Deficiencies in the Design of
Controls over Processing
Absence
of
appropriate
reviews. - Absence of controls to
safeguard assets.
Deficiencies in the Control
Environment
- There is no ethics policy or
reinforcement of ethical behavior
within the company.

H. Recommendation
Internal Controls to Safeguard
Asset
Installation
of
Anti-Theft
Machine

- Installation
workplace

of

CCTV

in

the

- Appropriate reviews of inventory

- Segregation of duties
Establishment of Ethics Policies

II

III

IV.A

IV.B

IV.C

IV.D

IV.E

IV.F

IV.G

Characters:
Name: Suzette Washington
Company Employed: Bertolinis
Clothing Store (Southeastern
of United
States)
Position: Inventory Personnel
Currently studying, Accounting Major

Name: Paula Kaye

Company Employed: Bertolinis

Clothing Store (Southeastern of
United
States)
Position: Sales Clerk
Currently studying, Marketing Major

THE THIEVES
Name: Alex
Company Employed: Bertolinis
Clothing Store
(Southeastern of United
States)
Position: Sales Clerk
Name: Matt
Company Employed: Bertolinis
Clothing Store
(Southeastern of United
States)
Position: Trash Boy

During Suzettes senior years, Bertolinis began

experiencing abnormally high inventory shrinkage..
We have
been
suffering
losses due
to inventory
shrinkage.

!!!???!
!!???

??????
?????

.and I
believed that
one or more
of the sales
clerks were
stealing
inventories!!
!

Over lunch one day, in the student union..

eee???!!ah
Have you
eh,how
heard about
about your
the
plan in
inventory
weekend??
shrinkage in
our store??

Paula, rewind
for just a
second. Do you
know something
that I dont?

Huh? What
do you
mean??

Missing
inventory
shrinkage
theft!!!

Eh mey
ged..

After an awkward
moment..
I dont
know if its
true, but Ive heard
a rumor that Alex
and Matt are
stealing a few
things each .
Occasionally, they
take something
expensive

Hah!!!
How
are
they
doing
that??
?

(Narration of Paula) Ive heard --- and dont repeat of

this now--- Ive heard that a couple of times per week,
Alex stashes one or two items at the bottom of the trash
container beneath the number two cash register.
Cash Register #2

Trash Can

.then Matt, you know he empties the trash every night

in dumpster out in the alley, takes out and puts them in
his car.
Cash Register #2
Trash
Can

Paula, we
cant them
get away
with this.
We have to
tell
someone

HUH?
??!!!!

No, we dont
Remember, this is
just a rumor. I
dont know that its
true. If you tell the
manager, there will
be questions. And
more questions.

Maybe the police will

be brought in. You
know that eventually
someones going to
find out who told. And
then slashed tires
phone calls in the
middle of the night.

So, dont
get
involved?
Dont do
anything??!
! Just let
those
people keep
stealing?

???!!!
!

Suze, you work in

inventory. You
know the markup
they put on those
clothes. They
expect to lose a
few things here
and there to
employees.

Maybe the
markup wouldn't
be so high if
theft wasnt such
a problem

Now, there was no doubt in Paulas mind that Suzette

was going to report this to the management.

???!!!!

Two months, Suze.

Two months till we
graduate. Can you
wait till then to
spill the beans?
Then we can move
out of state before
our cars are spraypainted

One week following Suzette and

Paulas conversation, the Bertolinis
store
manager
received
an
anonymous
type
message
that
revealed the two person theft ring
rumored to be operating within the