Social Auditing : Environmental Ethics Issues

Topics: Financial audit, Auditing, Internal control Pages: 5 (1571 words) Published: December 6, 2012
Social Auditing: Environmental Ethics Issues
Characters:George Holt financial director
Kim Hopkins internal auditor
Senior Management
Brian Henderson professional accountant (friend)

Phone ringing by George to Kim
George: hello!!!! Kim
Kim: Yes, sir!!!
George: Kim, I would like to highlight to you, that our management board meetings is schedule to next week Monday. Kim: Humm!!!
George:I want you to make audit report on the company’s affaires….including graphs and figures…with full reconciliation. Kim: ok, sir!!!
George: Also, you can include any other relevant issues that you would like to add will be really appreciated, which management needs to been highlighted. Kim: ok sir….I will do that asap without any delays. Thank you Kim was busying from her internal audit in the company. She discovered something very unusual and strange. SECOND SCENE; Monday Management Meeting

Senior Management: Anymore things need to be discussed before we all call off the board meeting for today. Kim: yes sir!!!...I have very important issues to be discussed and needs urgent attention. Senior Management: Yes…go on Kim. What important issues would you like to highlight in this boards meeting. Kim: Sir!!! From my internal audit, I have discovered that the factory is very wasteful of energy resources and is inefficient in its use of equipment and investment funds. Senior Management: what are you trying to say, Kim?

Kim: Sir!!! I am trying to say that particularly serious is the plant’s practicing of depositing untreated toxic waste into a river. And I believe in future that it could incur a huge amount of fine costing more to the company’s income. Senior Management: Kim!!! As an internal auditor of this company, you don’t have any right to criticize how we operate the business. Running this business is difficult enough and top of that given the composition from overseas companies are not easy. Kim: But Sir!!!

Senior Management: Kim!!! Be mindful…that we are employing 200 staffs, and we do not wish to put our positions or jobs of these employees in jeopardy. There is already a high level of unemployment in the region. Kim: Sir!!! I counter that if we ran this plant more efficiently than this company could save money, which could then be invested in treating the toxic waste. I also would like to warn that you might have to face a substantial fine dumping the toxic waste into the river. Senior Management: Kim!!! We do not agree….I consider that you do not have the scientific or technological background to qualify you to judge on these matters. Moreover, as managers, it is us who to assess the risks involved, not the internal auditor of the company. Kim: Sir!!!

Senior Management: NO!!! This meeting has come to end. Thank you…..George…can I have a word with you. George: Yes, sir!!!
Senior Management: George…you are a senior financial director and it’s your responsibility that what the other staffs are discussing in the meeting. I do not want any of those issues to be rise in the meeting again. George: Yes, sir!!! I’ll keep in mind

Senior Management: Kim has exceeded the boundaries of her position as internal auditor and Kim should approach her immediate supervisor that is you before she start’s to spread that information to others. She is not keeping her professional work separate from her personal interest in “green” issues.

George: Yes, sir!!! I am just going to talk to her regarding this issue. Senior Management: ok George.
George: Kimmmmmm
Kim: Sir!!!
George: I am very upset with you, Kim. You are an experience auditor and you did not mention to me about the issue discussed in the meeting before raising it to the management. Kim: Sir!!! I want to but I thought it would be better to raise this issue in the board meeting. George: But WHY KIM!!!! You are just an internal auditor of this firm and I am your immediate supervisor……..before attempting to raise the problem at senior...
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