Ned Naive operated several franchised stores, and at the home office’s suggestion, he consolidated its payroll and accounting functions with Andy the Accountant. Andy is not a CPA. Last year, Andy began misappropriating taxpayers’ escrowed tax withholdings to himself and failed to remit required amounts for the four quarters. The IRS assessed Ned penalties for failing to make the proper with-holding deposits during the year.
a. What additional information might you want in this situation?
b. Where might that information come from?
c. Are all the given facts pertinent? Which (if any) are irrelevant?
d. Where might that information come from?
e. Are there any additional research question(s) you want to address?