Accounting: Fraud
Problem: Betty King is the new controller at EZdot.com. The previous controller was fired for incompetence. Ezdot.com has some severe cash-flow problems that have become exacerbated by the recent acquisition of another firm. The financials of both EZ and the other firm are as clear as Mississippi mud. The new company has 450 employees that have a can do attitude. EZ's bank is seriously concerned about the companyââ?¬â?¢s viability. Betty discovers that her new boss, Ryan, who is EZ's president and major shareholder, is holding a substantial amount of checks from customers in his desk without telling her. Ryan also plays with the firms float on a daily basis. (Float is the money that is used on a day-to-day basis for operations.) It's close to tax time. The bank wants to know what is occurring and has a meeting with Betty today. Betty should:
I need to write a 2 to 3 page paper describing what, ethically speaking; why I should explain to the bank exactly what is occurring at EZ.