Borowitz Company Maintains Two Separate Accounts Payable Computer Systems

question 150

Essay

Borowitz Company maintains two separate accounts payable computer systems. One is known to all the users and is used to process payments to vendors. Employees enter the vendor code or the name and address of new vendors the amount the account and so on. The other system is a secret one. It is used to cross-check the vendors against an approved vendor list. If a vendor is not listed as approved the payment process is halted. Internal audit employees seek to verify the existence of a bona fide claim by the vendor. All inquiries are made at the top management level and very discreetly. No one but top management the internal audit staff and the Board of Directors of the company is even aware of the second system.
Required:
Is it ethical for a company to have a secret system like the one described? Explain.

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Definitions:

Katz's Model

A theory developed by Robert L. Katz suggesting that effective leaders need three essential skills: technical, human, and conceptual.

Technical Skills

Abilities and knowledge needed to perform specific tasks. They involve the understanding and proficiency in a particular specialized field or activity.

Problem-Solving Skills

The ability to identify, define, and effectively address and resolve issues or obstacles, critical in both leadership and teamwork.

Technical Skills

The specific knowledge and abilities required to perform tasks related to technology or specific fields of work.