In: Accounting
Randy and John had known each other for many years. They had become best friends college, where they both majored in accounting. After graduation, Randy took over the family business from his father. His family had been in the grocery business for several generations. When John had difficulty finding a job, Randy offered him a job in the family store. John proved to be a very capable employee. As John demonstrated his abilities, Randy began delegating more and more responsibility to . a period of time, John was doing all of the general accounting and authorization functions for checks, cash, inventories, documents, tecords, and bank reconciliations. John was trusted completely and handled all financial functions. No one checked his work. Randy decided to expand the business and opened several new stores Randy was always handling the most urgent problem" is what his college professors termed itwith the problems when his other duties allowed him time. Although successful at work, John had difficulties with personal financial problems At first, the amounts stolen by John were smallJohn did not ever worry about making the accounts balance. However, John became greedyHow casy it is to take the money," he said. He felt that he was a member of the business team and that he contributed much more to the success of the company than was represented by salary, "would take or three people to replace mehe often thought to himself. As the amounts became larger and larger, made the books balance. Because of these activities, John was able to purchase an expensive car and take his family on several trips each year. He also joined an expensive country club. Things were changing at home, howeves. John's family obseryed that he was often argumentative and at other times very depressed. The fraud continued for 6 years. Each year, the business performed more and more poorly. In the last year, the stores had substantial net loss. Randy's bank required an audit John confessed when he thought the auditors bad discovered his fraud "and that he contributed much more..." is an example of a
(A) Analytical symptom
(B) Situational pressure
(C) Rationalization
(D) Behavioral symptom
After reading the whole case the points that come up are that randy was become too dependent on john that he assigned all the work to him and second that John started this malpractice or can say fraud in starting due to some financial problems and the fraud continues for years till the date when randy's bank required an audit John confessed when he thought the auditors bad discovered his fraud "and that he contributed much more..." is an example of RATIONALIZATION because john is saying that he contributed much more to the company.usually in rationalization the person justifies his action and express that he is not wrong,the person self defend themselves of doing such act.in this case john thought he is the one who have the right over the success of the company as he contributed muchand he is not getting that much of return as salary from the company.
If by chance john said that it is due to difficulties with personal financial problems or have no other option that he done such act then the answer is to be situational pressure but as he said he contributed much more... so this is an example of RATIONALIZATION.
I HOPE THIS WILL HELP YOU!!!