Reference no: EM132658093

Over the summer, you were hired by your uncle as an accounting intern for his landscaping company, which operates as a sole proprietorship. While working as an intern, you discovered that Sandra, the company's only accountant, has been using the company's money to pay for some of her personal expenses. Sandra recorded these personal expenses in the company's books as business expenses. Sandra told you that she needed the money to pay the hospital bills of her sick child. She also requested that you not tell your uncle about her actions, because she is simply borrowing this money and will try to pay the company back in about a year. Because you were hired for only three months, there is no way for you to know whether Sandra will in fact return the money.

While your uncle is a great landscaper, he has very limited accounting knowledge and therefore does not know how to check Sandra's accounting work. He generally trusts Sandra because of her college degree in accounting.

Required:

Question 1: Analyze Sandra's actions using the fraud triangle as the framework.

Question 2: Discuss whether you should reveal Sandra's actions to your uncle and why or why not.