Sally Oversees the Accounting Operations at Hopewell Distributors

question 88

Essay

Sally oversees the accounting operations at Hopewell Distributors. Recently, Sally suspects an accounting manager commits fraud because the accounting manager in the operations division submitted a report that had incorrect account receivable totals. Sally checks the actual receivable totals against the forecasted totals and her assessment is correct. The manager then reports lower total receivables and compares those totals to the amount the company actually collects. A recent audit report indicates that the manager wrote checks payable to cash and cashed the checks. What actions should Sally take about the information she discovered about the accounting manager in the operations division?

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that shape how an organization's members interact and work together.

Strategic Leadership

The ability to influence others towards the achievement of long-term organizational goals.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on the interests of stakeholders, including shareholders, management, customers, suppliers, financiers, government, and the community.