You are involved in the audit of Puzzler Ltd (Puzzler), and have been examining the documentation associated with Puzzler's purchase from Worthington Ltd (Worthington) of the expensive and troublesome Jigsaw Cutter. However, the documentation is highly summarized and incomplete, and it is difficult for you to determine whether Puzzler's capital purchasing policy has been followed.
Puzzler's General Manager—Production, Blake Sheen, would ultimately have been responsible for presenting the case for the Worthington purchases to Puzzler's Board. You have a good relationship with Blake, including a common interest in the national football competition. You approach Blake, who listens carefully to your concerns and seeks to reassure you that all necessary procedures were followed. He also tells you not to be concerned with the teething problems that they are having with the Worthington equipment, as he used to work with them as an engineer prior to joining Puzzler and knows that they build top-quality machines. He suggests that you join him for lunch as his guest at an extremely expensive restaurant in the city so that you can discuss the matter further.
As you are about to leave, Blake offers you two tickets to the upcoming football grand final, which he says he won in a competition and is unable to use.
(a) List and discuss four ethical issues you face.
(b) Describe what actions you should take in order to overcome the issues you identified.
This question belongs to accounting and discusses about ethical issues and actions to be taken in order to overcome the issues.
Total word count: 577
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