- 10 Marks
CR – Aug 2022 – L3 – Q3c – Regulatory framework and ethics
This question discusses ethical breaches committed by staff members and the finance director related to cash management and accountability in Gogo Ltd.
Question
Mr. Ben Terkper, the Finance Director of Gogo Ltd, is known to be very strict in managing his staff and his dealings with other employees. A new product introduced by the company is yielding high sales. This has led to increases in cash shortages. In order to reduce the cash shortages, Management employed Hannah, a cousin of the Managing Director, Mr. Okantey.
It is the policy of the company to recover cash shortages made by cashiers by the end of the next working day. Over the years, Mr. Terkper has applied this policy without fear or favor. However, since her employment as a cashier, Hannah has made several cash shortages that have come to the attention of Mr. Terkper and Mr. Okantey. However, Hannah has never been asked to refund any of the cash shortages made so far. The financial statements for the year ended 31 December 2021 are being prepared, and Mr. Okantey has instructed Mr. Terkper to write off the losses made by Hannah.
Required:
i) Assess the possible ethical breaches committed by Hannah, Mr. Terkper, and Mr. Okantey. (4 marks)
ii) Recommend FOUR (4) possible actions that should be taken in dealing with the ethical breaches raised above. (6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Ethical Breaches, Integrity, Objectivity, Professional competence
- Level: Level 3
- Topic: Regulatory Framework and Ethics
- Series: AUG 2022