Bangladesh University of Textiles

Executive Development Center (EDC) Executive Development Program (EDP) Postgraduate

Diploma In Textile Management

Name – Khan Mohammad Noman

Batch – 15, Reg. ID - 2015491

Subject – AM-01

Assignment (due in 7 days from the class date)

Activity 1
Diana is a college graduate with accounting as her major and is planning to take the CPA
exam. She recently accepted the Staff Accountant’s position with the ZZ Cinema Franchise.
There are 20 theatres that are owned by the Franchise in a widely spread geographic area.
John is manager of all the locations of the theatre franchise and William, distantly related to
him, is the Assistant Manager working solely at his location. Jodi sells tickets from a glass
cage and collects the cash from patrons. At the end of the last show, he adds up the cash
receipts, reconciles his sales and hands over unsold tickets and cash to William. Bob, the
doorman, collects the tickets from incoming patrons, tears the tickets into two, hands over
one to the patron and drops the second half into a little locked box which William picks up
at the end of the day. William prepares the bank deposit slip, deposits the cash in the bank,
and keeps the bank receipts and the unsold tickets in the office safe to which he has the only
key. William also prepares the bank reconciliation statements and submits weekly sales
reports to Diana.
Of late, William has volunteered quite frequently to speed up ticket sales on crowded days
by working Jodi’s station at the sales counter. John has not objected to this practice. During
the past month William has been seen driving a fancy new Lexus to work and seen dining
with an attractive blond at the town’s expensive restaurants. Diana finds from William’s
reports that sales have shown no change from previous weeks, even though there appears
to be an obvious and significant increase in movie theatre attendance during the summer
season. This puzzles Diana, who suspects this apparent discrepancy is being pocketed by
William. More puzzling, why hasn’t John also noticed this problem? Diana wonders if she
should report her suspicions to someone in authority. After all, she has no proof. More
importantly, should she go to John? He might be involved in this possible scam. What should
she do?

If we go for the characters & individual duties first will find as below –

 John - Manager of Theatre Franchise

 William - Assistant Manager of Theatre
 Diana - Staff Accountant of Franchise
 Jodi - Ticket seller and cashier
 Bob – Doorman
Now,

(a) Who are the stakeholders (affected parties) in this situation?

Ans : All the parties (Owners) who got profit share from the ticket selling & all over
the business will affected in this situation by losing profit. Also the employee’s will
lose their faith.

(b) What are the ethical issues in this case?

Ans : This case is a clear violation of the integrity and responsibility principles from
AICPA code of conduct. While analyzing the case, one must notice that the officers in
charge is not displaying integrity towards the accounting profession. The behavior is
irresponsible and can tarnish the image of accounting profession.

(c) What would you do in this situation?

Ans : If I’m on the situation, will take below initiatives -

 Immediately there should be a segregation of duties
 Reconciliation of tickets sold and revenues reported once again
 Report the matter to John - after all he is the topmost person there.

Activity 2
After numerous campus interviews, Steve Baden, a senior at Great Northern College,
received two office interview invitations from the Baltimore offices of two large firms. Both
firms offered to cover his out-of-pocket expenses (travel, hotel, and meals). He scheduled
the interviews for both firms on the same day, one in the morning and one in the afternoon.
At the conclusion of each interview, he submitted to both firms his total out-of-pocket
expenses for the trip to Baltimore: mileage $112 (280 miles at $0.40), hotel $130, meals
$36, parking and tolls $18, for a total of $296. He believes this approach is appropriate. If he
had made two trips, his cost would have been two times $296. He is also certain that neither
firm knew he had visited the other on that same trip. Within ten days Steve received two
checks in the mail, each in the amount of $296.

Instructions
(a) Who are the stakeholders (affected parties) in this situation?

Ans : In this case Steve Baden is the only stakeholders as both the firms didn’t know
about each other & they knew that they are the only host & kept that money on their
budget. So Steve who got extra money on above story was the only affected party.
(b) What are the ethical issues in this case?

Ans : The question is was Steve paid for his "out-of -pocket" expenses, answer yes
but twice. In business when we have contracts worded to same way, there is always
a provision that this refund is always net of any other reimbursements (in order to
stop double dipping). Steve did in essence Double Dip. He made a "profit" on these
interviews. Obviously from an Ethics point of view what he did was wrong. The
firms offered a "Good Will" gesture to help he offset his expenses in coming to the
interviews, and he decided to take advantage of this gesture. But, since each of use
 have our own definition of what we believe is Right/Wrong for these types of moral
questions it's really up to Steve to decide how he feels about cheating his potential
employer.

(c) What would you do in this situation?

Ans : It will be not appropriate to the first job by cheating with any type false
statement. Though I’ll not tell the employer that I’m having two interviews in same
day. Simply I’ll divide my expenses in two parts and give the bill t to the interviewer
of their accounts department. Moreover if they ask me the reason of half bill, only
then I’ll tell them the actual cause and give the explanation. I’ll be truthful to them
and show them my honesty. Above all they expect a good and faithful employee.