1 MINICASE: ACCT - 16 BUSINESS ETHICS PROGRAM Whatever Happened to All Those Credit Slips? Topic: Violations of Internal Control Characters: William Dalton, President of Dalton Enterprises, Inc. Chauncy Dalton, VP of Finance and future President (?) Tim Johnson, In-charge CPA George Smerlas, Controller Tim Johnson, CPA, is the senior in-charge on an audit of a medium sized ($20M in assets) client, Dalton Enterprises, Inc. This client is a family owned and operated corporation. Mr. William Dalton (67 years old) is the president who micro manages all aspects of the business except the finance area, which he leaves entirely to his son, Chauncy, who has been newly appointed as the VP of Finance. Chauncy, recently graduated with an MBA, and majoring in finance, is responsible for administering all the financial and accounting aspects of the business including the appointment of the auditors. Chauncy replaced Herb Castle who retired after thirty years with the organization. George Smerlas as controller reports directly to Chauncy. The audit report has never circulated outside the organization. The report provides a basis for