When Auditing Expenses Claimed by the University President,the Auditors Found

question 12

Multiple Choice

When auditing expenses claimed by the university president,the auditors found extravagant spending on $1,000 per night hotels,banquets,and gourmet restaurants.The president was fired,alumni donations declined,and staff members-who were disturbed by the extravagance while staff salaries were frozen-quit their jobs.This example illustrates

• A) that universities are more corrupt than companies.
• B) that the extravagant spending should have been kept quiet to minimize damage to the university.
• C) that the impact of unethical actions can affect the organization in unanticipated ways.
• D) the need to identify issues.
• E) the lack of information needed to make ethical decisions.

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Definitions:

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the indorser or specifies conditions for the payment.

Indorser

An entity or person who signs the back of a negotiable instrument, such as a check or promissory note, thereby transferring ownership or guaranteeing payment to another party.

Instrument

A tool or device used for a specific purpose, often referring to musical instruments or legal documents.

Maker

Typically refers to the individual or entity that creates or executes a financial instrument, like a check or promissory note, thereby committing to the terms outlined therein.