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:

Percent Reduced

A measure of how much a number or value is decreased expressed as a percentage.

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Percent Increase

A measure of the degree to which a quantity has grown compared to its original value, expressed as a percentage.

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Vehicles towed behind others, used for transporting goods or as mobile homes.