In one of the case studies in the textbook, Cy Chesterly was the vice president in charge of sales for one of the largest machine parts manufacturers in the Midwest. He was an excellent salesman and helped build the company into one of the most successful in the industry. While Chesterly was known to go overboard on the entertainment expenses, he really went wild when it came to buying personal items-vacations, furniture, and jewelry to name a few. How was he caught?
A) He purchased one too many high-ticket items for his son and this was brought to the attention of the CEO.
B) A new president was hired and he found Chesterly out while reviewing the accounting records.
C) Chesterly became ill and the receipts for personal items were found while he was out sick.
D) The internal auditors found Chesterly out during an audit of his cost center's expenses.

Question

Quizplus · Accepted Answer

A new president often reviews financial records and operations to understand the current state of the company, which can lead to the discovery of irregularities such as unauthorized personal expenses.

In One of the Case Studies in the Textbook, Cy