pls avoid plagiarism -no copy answers.. thank you. Case Study On a weekday morni
ID: 2341084 • Letter: P
Question
pls avoid plagiarism -no copy answers.. thank you.
Case Study
On a weekday morning in 1975, there was an anonymous phone call to a cash teller at one of the nation's largest national banks. The anonymous caller stated that an employee had just stolen $$100,000 from an electronics supply subsidary of the bank. The Financial VP of the bank was notified; he called in one of the internal auditors and assigned him to solve the case. The auditor, working in conjunction with a retired FBI agent, employed a secretary and immediately set up an office at the electronics supply plant. An analysis of the accounting records showed that the theft involved inventory. The first step was to interview many of the 100 employees of the plant including all plant officers. None of the employees knew anything about the inventory. Normally for this kind of happening the auditor is well known that the company must be insured and insurance department must see the case. But, there was some kind of conspiracy was involved in that case.
Second, an analysis of the Accounts Receivable records showed that a major building construction firm only owed $9.54, though its supply trucks were always picking up large amounts of electronic inventory. He immediately became unavailable for questioning! Several days later the auditor was contacted by an attorney representing the building construction firm for an appointment for his client and himself. When the auditor arrived, the attorney stated, "I want you to know that my client has done absolutely nothing wrong! But here is some information you might like to know." The attorney then explained how the 30-year-old son of the president of the electronics supply plant would sell inventory at one-half price if the construction firm made out the checks to the son personally. They had, in effect, purchased $200,000 of inventory for only $100,000. The insurance company did not take any action and attention about the case.
This information of the theft was immediately supplied to the Financial VP and the bank's attorneys. Within 48 hours, the president of the electronics supply plant retired. His son had fled the state and $100,000 in cash was returned to the bank.
Questions: (7 MARKS)
1-Did the employees know of the lost inventory?
2-Why the auditor did not take any action against the insurance company?
3-Was there any conspiracy involved in between the insurance company and the auditor?
4-Why the insurance company did not pay the theft amount?
5-If they did, why didn't they tell more?
6-Were the president of the construction firm and his employees honest? Had they done anything wrong?
7-Could they be sued?
8-Why did the father retire? What was his responsibility?
9-Should the bank's corporate officers go to the police and indie the son on grand theft?
10-The bank received back $100,000 from the theft. Where from?
Explanation / Answer
Post 2 ,3 ,4 seperately.I have tried to answer the rest for you.
1-Did the employees know of the lost inventory?
It is possible that the employees knew about the theft. It is the reason one of the employees called the bank to anonymously to inform them about it.
5-If they did, why didn't they tell more?
The son of the president was involved and they must have feared of the consequences they may face for reporting such a high ranking officer.
6-Were the president of the construction firm and his employees honest? Had they done anything wrong?
No, they were not. They engaged in a criminal activity while they were aware it is wrong.
7-Could they be sued?
Yes, they could be sued for dealing in stolen goods. It also falls under the category of corporate theft.
8-Why did the father retire? What was his responsibility?
He retired as part of taking responsibility of actions his son took at the electronics company.
Since he is the president of the bank, it is wrong to hire his son at one of the subsidiary. Additionally, he had the responsibility of ensuring that the bank as well as the subsidiary has frequent checks where such criminal activities are preempted.
9-Should the bank's corporate officers go to the police and indie the son on grand theft?
Yes, they should do it as a deterrent of repeat criminal activity within the organization.
10-The bank received back $100,000 from the theft. Where from?
It was from the son of the subsidiary’s president.
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