ZZ Cinema
Possible Alternatives
- Accuse William of fraud and tell John
- Discuss, but not accuse anyone
By: Tusaani Kumaravadivel, Joyce Tan, Lianne Wu, Jessica Mark, Nicole Ratti, and Sabdanaa Jeyakumaran
Ethical Issue
Ethical Alternative
Internal Controls
Discuss the discrepancies with John, but not accuse anyone of fraudulent practices
Reliability of Financial Statements
Objectivity Principle
- Financial data should be based on verifiable data
Primary Stakeholders
Practical Constrains
Include all of the customers, employees, suppliers, creditors, and stockholders such as:
- Diana, John, William, Jodi and Bob
- May also cause an innocent employee to lose their job
- May be difficult & time-consuming
Relevant Facts
Diana (Staff Accountant):
William (Assistant Manager) :
- Distantly related to John
- Increase in attendance with no change in sales
- Prepares bank slips and deposits cash in bank
Jodi (Sells tickets):
- Has the only key to the safe where bank deposit slips and unsold tickets are kept
- Adds up cash receipts and collects cash
- Volunteered at Jodi's sales counter
- Hands unsold tickets to William
- Recently showed signs of wealth
Bob (Doorman):
John (Manager):
- Puts half of ticket in box which William collects
Click anywhere & add an idea
Action to be Taken
- Discuss the increase in attendance and the lack of increase in sales with John
- Do not mention anyone of taking the company’s money for themselves.