'Statement of Ethics Issue\r'

'Oct 20 2012 Oct 20 2012 ACCT 3121 Instructor: Ms. Julie Chenier ACCT 3121 Instructor: Ms. Julie Chenier | Written subsidisation| | student: Yichen Chen| | Written Assignment| | Student: Yichen Chen| To: Manufacturing Manager From: Becky Knauer Date: Oct 20 2012 subordinate: Action of Ethnic Issue for Mueller Imports Dear Officer, My arouse is Becky Knauer, the new considerler in Mueller Imports. Being selected as an experienced automotive professional to join such(prenominal) a huge management team, I trail at using my objective view and expertness in addition to all available sources to trump assist the organization.Recently, while managing the pecuniary statement, I recognize there argon several trans work ons that are susceptible for ethical issue. A $5000 monthly bill billed from the jeweler was personally approved as â€Å" exchange expense” by the comp whatever’s owner Frank Mueller. My probe exposes that the red wilt involves significant finesse: 1. The periodic watch pass to regional sales managers and other sales exclusives indicates the bribery. By receiving expensive rewards from Mr.Mueller, sales exclusives give biased simple machine distribution to dealers. 2. The invoice billed by a local jeweler reveals the probability of collusion. Because the watch marketer does not bill the transaction as a regular sale but explained it as a â€Å"miscellaneous service”, the jeweler has the high inducing to set the underground agreement with Frank Mueller. I suspect the indirect service charge conceals this fact. 3. The dour financial statements presented by Mr.Mueller reveal the misrepresentation. Mueller’s action violates the policy of segregation of duties by overriding his skillful to authorize the controllable cost. His statement of this expenditure â€Å"selling expense” overstates the expense and understates the net income as well. He indirectly gains comparative advantages from the transaction ca lled into question. Frankly, in the affix unretentiveage market, the substantial sale and high proceeds goal are pushing the upper take management into a dilemma.It seems that the fraud is initiated by the owner Frank Mueller, regional sales managers, and other snarly exclusives, trying to gain personal interests by committing the fraud. flat though the outstanding sales can recreate in large profits for Mueller Imports in the short term, the significant performance will be reevaluated and discover to the public. Consequently, all individuals within the organization and third parties committing to fraud will receive their deserved penalties.In addition, if Mueller Imports announces bankruptcy, employees who are barren from the fraudulent activities will also suffer unemployment. gibe to Tom York (Segregation of Duties, 22), engaging in corrupt practices creates a very unfavorable business environment by encouraging unfair advantage and anti-competitive practices. As a cont roller within the company, I have the correctly to establish the monitoring plans for internal controls to ensure that bullion are expended and recorded appropriately on the financial report (Controller Job translation, 10).Referring to the IMA’s rehearsal of good Professional Practice, the issue should be discussed with the higher aim of supervisor or management who is not knotted in the issue. Since the fraud is committed by the the covert level of the organization, it is inappropriate to submit the issue to any level within the organization. However, it is impractical to hands-off because the occupation of committing to the fraud which violate the autograph of ethnic. If I do nothing, I will be drawn into the back of fact as well.As far as I am concerned, it is not wise to fight the wrong issue with the upper level management, nor do I want to build a hostile human relationship with the people of Mueller Imports. The most viable actions are: 1. tack together enough potential fraudulent statements, 2. Take an investigation of sale managers’ life activities 3. Carefully evaluate the control system. After gathering substantial evidence, I would care to initiate a confidential discussion with you as well as the IMA ethnic advisors.In accordance with code of ethics (IMA Statement of Ethical professional Practice, rogue 1), I will provide objective tuition and concerns to the appropriate business associates in the confidential elan. chase the guidance of the code of ethics, I want to hold my professional skills supported by the appropriate permission to address the issue. Your responses and concerns will be very key to deal with the issue. I hope it can be solved in a professional manner resulting the in the car market returning to a fair and healthy state in the bulky run.I am looking forward to hearing from you. Sincerely, Becky Knauer lean Cited: Controller / Business Manager Job Description <http://autocareersjobs. com /automotive-dealership-job-descriptions/controller-business-manager-job-description/> The Association for Accountant and Financial Professionals in Business, IMA Statement of Ethical Professional Practice, <www. imanet. org> York, Tom, Segregation of Duties, UNC Charlotte, <internalaudit. uncc. edu/sites/internalaudit… /SegregationofDuties. pdf>\r\n'