It has been seven years since Terkper assumed the position of Director of Finance in Ambassador...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
It has been seven years since Terkper assumed the position of Director of Finance in Ambassador plc. Mr. Terkper is known for his firm and stern position on managing employees in the Finance department of the organization and even employees in other departments. Recently, the company introduced a new product, which is generating sales and cash tremendously. However, the increase in sales also aggravated the company's problem of cash shortages made or recorded by Cashiers. Consequently, Management resolved to employ an additional Cashier. Hannah, the cousin of Mr.Okantey, the Managing Director, was employed on a part-time basis as a Cashier. It is the policy of the company to recover cash shortages made by Cashiers by the end of the next working day. Over the years, Mr. Terkper has applied this policy to the letter without fear or favour. Hannah, since her employment as a Cashier, has made several cash shortages which have come to the attention of Mr. Terkper, the Finance Director and Mr. Okantey, the Managing Director. However, Hannah has never been asked to refund any of the cash shortages made so far. The financial statements for the year ended 31st December 2021 is being prepared and Mr. Okantey has instructed Mr. Terkper to write off the losses made by Hannah carried in the Walk-in-cash ledger. Required: (a) In accordance with the IFAC's code of ethics, assess THREE (3) possible fundamental ethical principles that might have been breached. (5 marks) (b) Recommend the possible actions that the Finance Director should take as a member of the Institute of Chartered Accountant, Ghana in dealing with this ethical dilemma. It has been seven years since Terkper assumed the position of Director of Finance in Ambassador plc. Mr. Terkper is known for his firm and stern position on managing employees in the Finance department of the organization and even employees in other departments. Recently, the company introduced a new product, which is generating sales and cash tremendously. However, the increase in sales also aggravated the company's problem of cash shortages made or recorded by Cashiers. Consequently, Management resolved to employ an additional Cashier. Hannah, the cousin of Mr.Okantey, the Managing Director, was employed on a part-time basis as a Cashier. It is the policy of the company to recover cash shortages made by Cashiers by the end of the next working day. Over the years, Mr. Terkper has applied this policy to the letter without fear or favour. Hannah, since her employment as a Cashier, has made several cash shortages which have come to the attention of Mr. Terkper, the Finance Director and Mr. Okantey, the Managing Director. However, Hannah has never been asked to refund any of the cash shortages made so far. The financial statements for the year ended 31st December 2021 is being prepared and Mr. Okantey has instructed Mr. Terkper to write off the losses made by Hannah carried in the Walk-in-cash ledger. Required: (a) In accordance with the IFAC's code of ethics, assess THREE (3) possible fundamental ethical principles that might have been breached. (5 marks) (b) Recommend the possible actions that the Finance Director should take as a member of the Institute of Chartered Accountant, Ghana in dealing with this ethical dilemma.
Expert Answer:
Answer rating: 100% (QA)
a Possible Fundamental Ethical Principles that might have been breached 1 Integrity Integrity is one of the fundamental ethical principles that could have been breached in this situation Mr Terkper as ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Subject : Strategic Management in a Global Environment Safaricom: Innovative Telecom Solutions to Empower Kenyans As the largest mobile provider in Kenya, Safaricom has touched the lives of Kenyans...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Translate the seven steps to Java code.
-
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2018, granted restricted stock units...
-
Dewayne Hubbert, Elden Craft, Chris Grout, and Rhonda Byington bought computers from Dell Corp. through its Web site. Before buying, Hubbert and the others configured their own computers. To make a...
-
a. The value of a warrant depends primarily on the expected growth of the underlying stock's price. This growth, in turn, depends in a major way on the plowback of earnings; the higher the dividend...
-
Corizon Company's balance sheet and income statement are shown below (in millions of dollars). Corizon and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of...
-
Determine the intervals on which the given function is concave up or concave down and find the points of inflection. f(x) = 8xe-9x (Use symbolic notation and fractions where needed. Give your answer...
-
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnerships first...
-
P acquired 100% of the shares of S on Jan 1 2018 by paying $350,000. On that date, the books value of the assets of S was $500,000 and abilities was $200,000. Also, on that date, the book value of...
-
Compared with a manual system, the assets and records in a computer-based information system tend to be: a. More concentrated at a single location b. Dispersed across many more locations c....
-
In a computer system, it is often difficult to evaluate the system of general authorizations because general authorizations have been: a. Dispersed to more users b. Combined with specific...
-
Which of the following has not been an effect of computer-based information systems on auditing: a. Evidence collection tends to be harder to carry out b. Understanding the control technology tends...
-
A major contribution of computer science to the discipline of information systems auditing has been: a. Insights into how generalized audit software should be developed b. An understanding of why...
-
In a computer system, independent checks on performance are often unnecessary because a procedure is performed by a computer program. Similarly, computer programs rather than independent staff often...
-
Ho: p=0.75 Ha: p 0.75 A researcher is simulating samples of n=50 from a population with a proportion of p 0.75 and conducting hypothesis tests using the statements above. If they conduct 10...
-
Cassandra Casey operates the Futuristic Antique Store. She maintains subsidiary ledgers for accounts payable and accounts receivable. She presents you with the following information for October 2019:...
-
A company is currently manufacturing at only 60 per cent of full practical capacity, in each of its two production departments, due to a reduction in market share. The company is seeking to launch a...
-
A company makes two products, X and Y. Product X has a contribution of 124 per unit and product Y 80 per unit. Both products pass through two departments for processing and the times in minutes per...
-
A company has two products with the following unit costs for a period: Production and sales of the two products for the period were Production was at normal levels. Unit costs in opening stock were...
-
Nomar Parra bid for and won a concession to rent bicycles in the local park during the summer. During the month of June, Parra completed the following transactions for his bicycle rental business:...
-
Graph \(K . o ightarrow q ightarrow m ightarrow n ightarrow p\) Use the figure shown to determine whether the sequence of vertices in the given graph is a Hamilton path, an Euler trail, both, or...
-
Vertices \(a\) and \(e\). Recall the three common scenarios in which it is not possible to have a Hamilton between two vertices. Scenario 1: If an edge \(a b\) is a bridge, then there is no Hamilton...
Study smarter with the SolutionInn App