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roTessional accountants 4713262 HELP MODULE LIST Peter, the financial controller of a medium-sized electronic retailer, faces the following dilemma and a potential area of conflict arises: George and Henry are employed as the company's two management accountants. George is a longstanding employee the electronics firm and has never given his employer a cause for concern. Peter and George have noticed that Henry has been starting work much earlier than usual and that he has been carrying an unusually large bag into work on certain days of the week. Henry, the nephew of the company's owner Tom, joined the finance team less than 2 years ago Whilst preparing the quarterly financial statements. Peter discovers a significant number of inventory adjustments that have been written off. Peter then asks George and Henry to explain the variances, but no one is able to produce any documentation. Peter then carries out a system enquiry on the variances to ascertain who posted the accounting entries and when. According to the system. George has posted the entries outside office hours. Peter immediately recognises that this is something he cannot have done as he was overseas on vacation when several postings were made. That day. Peter also notices that a copy of George's computer password is attached to the calendar on his desk. Drag and drop the options below to rank them on a 1-6 basis: in order of their suitability as Peter's initial course of action, with 1 being the most suitable - taking into account business effectiveness and relevant personal ethics considerations. Answers: Document the facts and send the report to Tom Report Nis suspicions to the temal auraitor and discuss the tightening up onenal controls 3:19 AM 4/16/20 C4 ) ENG Chuys onny Toralei and also 29C Clear 4713262 HELP MODULE LIST overseas on vacation wnen severai postings were made. That day, Peter also notices that a copy of George's computer password is attachet to the calendar on his desk. Drag and drop the options below to rank them on a 1-6 basis; in order of their suitability as Peter's initial course of action, with 1 being the most suitable - taking into account business effectiveness and relevant personal ethics considerations. Answers: Document the facts and send the report to Tom Report his suspicions to the intemal auditor and discuss the tightening up of intemal controls Mostantly dismiss Henry for theft and false accounting Take no further action at this stage apart from improving internal controls Speak to Henry directly regarding his suspicions Notify the police of the matter NEXT 29C Clear