In One of the Case Studies in the Textbook, a Southeastern

question 19

Multiple Choice

In one of the case studies in the textbook, a Southeastern medical college was plagued with fraudulent activity. What started as an investigation into some suspicious expense reimbursement activity eventually led to the discovery of a fictitious company that was set up to fraudulently bill the college for supplies that never existed. What was the first sign that there were more problems than the initial expense reimbursement fraud?

• A) The auditors found an usually high number of new unapproved vendors.
• B) The administrative assistant suddenly left town when requested to be interviewed.
• C) The supervisor resigned his position immediately.
• D) A tip was received by internal auditors.

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Definitions:

Social Audits

Formal procedures that identify and evaluate all company activities that relate to social issues such as conservation, employment practices, environmental protection, and philanthropy.

Ethical Awareness Stage

A phase in ethical development where individuals recognize that a situation or decision has an ethical dimension.

Code of Conduct

A set of rules outlining the responsibilities of, or proper practices for, an individual or organization.

Ethical Questions

Queries or dilemmas that involve discerning the best course of action when faced with a situation involving moral principles.