Your company produces an assortment of school supplies, and has a policy of supporting child health. One day you happen to notice information that (although it is not your area of expertise), in your opinion, indicates that the product produced by your company may be harmful to pre-teens. Furthermore, being the CFO, you have firsthand knowledge that the costs presented by the production department are understated by 15%. You recall that the last “trouble-maker” received a call from the Chairman of the Board, and had a hasty departure from the company.

What should you do? Speak to the Chairman or CEO about both items? Only report the item(s) you can verify? Talk to the respective department head(s)? Do nothing – someone else is responsible, or others will notice anyway? What should you do?

In Short Essay Form, answer the following questions:

1) What is the Board of Directors, and what is their responsibility? (6)

2) Should you act on information that in your opinion” ‘indicates'” something may be wrong? Why, or why not? (3)

3) What item(s) are you required to address, and why? (4)

4) Who all might be affected by the above situation? (4)

5) What other issue(s) may be present here? (3)

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