QuestionAccounting 7 Discussio

03 May QuestionAccounting 7 Discussio

Posted at 00:57h in Uncategorized by Past Papers

Question

Accounting 7 Discussion

Earl Farr, Mandy Wells, and Rob Good are clerks in a busy doctor’s office. One of Earl’s responsibilities is to reconcile the bank statement. He isn’t involved in authorizing payments, writing checks,
or making deposits. Ron is the accounts receivable clerk. He posts all payments and makes bank deposits. Occasionally, when he gets busy, Earl asks Ron to perform the monthly bank reconciliation. After it is reconciled, Earl initials it as though he had done it. Mandy, who is in charge of accounts payable, has been observing Earl and Ron and is considering saying something to their supervisor, the office manager. Mandy is sure the office manager is unaware of what is going on.

Is what Earl and Ron doing unethical?
If Mandy chooses not to say anything to the office manager, is she being unethical?

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