Question

Four S Event Planning, Inc maintains two separate accounts payable computer systems. One is known to all the users, and is used to process payments to vendors. Employees enter the vendor code, or the name and address of new vendors, the amount the account, and so on. The other system is a secret one. It is used to cross-check the vendors against an approved vendor list. If a vendor is not listed as approved, the payment process is halted. Internal audit employees seek to verify the existence of a bona fide claim by the vendor. All inquiries are made at the top management level, and very discreetly. No one but top management, the internal audit staff, and the Board of Directors of the company is even aware of the second system. Questions: 1. Is it ethical for a company to have a secret system like the one described? Explain why or why not. 2. Would you feel comfortable working for this company? Why or why not?

Answer 1

Answer : 1

The use of secret system that is used to check the integrity of non-secret primary systems is definitely ethical. It is possible to track frauds and other unethical practices through secret systems only. If in case these systems are misused in form accessing unauthorised information would be considered unethical.

Answer:2

Yes, I would obviously feel comfortable to work for this company. As it has proper code of practices. Above the application of secret systems will play a great role in controlling unethical practices.