Anonymous Company Case Study

3878 Words 16 Pages
Register to read the introduction… It allowed the secretary of the company to forge the consultant’s signature on the checks and make deposits into the most volatile of the business units’ account. Furthermore, AC instructed Page Nolan not to send 1099 to the consultant. It is quite clear that Anonymous Company has ineffective control environment due to negligent management’s role, and communication. The company does not have a clear organization structure or competent employees as unit managers kept referring Page to different family members. In addition, AC has not implemented an internal audit department to perform independent checks on the accounting system to verify transactions. There is no system of control activities as Anonymous Company lacks segregation of duties and authorization on the checks that are issued and …show more content…
Anonymous Company failed to generate a 1099 for the services provided by consultant, which can result in fines and penalties on unpaid taxes. Page Nolan has the obligation to report the discrepancies to IRS in order to adhere to the tax code. At the same time, consultant, a United States citizen, has the obligation to pay taxes on its income.

Owners (Green Family) The owners of Anonymous Company are very well-known in the community. It consists of twenty small businesses, which are owned by the Green family. They are financial stakeholders of AC, who expect a financial return as well as reputation and societal impact. Green family would be considered the most important stakeholder because they are the source of capital for Anonymous Company. Page needs to weighs the expectations of the owners. She has the obligations to present the case to the owners with sufficient information as they hold the greatest authority to overall business of Anonymous Company.

CPA
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It would include documentation one’s thoughts, decisions, and parties with whom Page discussed the issues. Page must consult with an attorney to discuss the legal obligations and rights concerning the ethical conflict. Furthermore, she should submit an informative memorandum to an appropriate representative of the company. Page made the right decision of resigning from the organization as she exhausted all levels of the company. The next step would be to notify regulatory authorities such as Internal Revenue Service and government agency to disclose material facts about Anonymous Company. Page will be able to set the precedence of honesty, integrity, and fairness while serving the public interest and accounting profession. It is in the best interest of Page to communicate her findings to proper authorities to fulfill her duty as a professional

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