Question

In: Accounting

You manage a car dealership in a large city. Many of your sales employees are very...

You manage a car dealership in a large city. Many of your sales employees are very successful and have purchased their own vehicles from your dealership.   Your dealership finances the sale of some of these vehicles. One employee recently paid off the balances on a couple of new vehicles purchased from your dealership. You discover this information after investigating complaints from customers about this particular employee’s actions. His sales are down, and customer complaints about his attitude abound. He previously worked for two other car dealers, both of which were satisfied with his performance. This employee is in charge of having used cars reconditioned by various automobile repair shops.

1. What signs of unusual behavior and lifestyle symptoms are present in this case?What are some possible causes for them?

2. How might the employee be defrauding the company?

Solutions

Expert Solution

1) In the case, the signs of unusual behavior and lifestyle symptoms and the concerned reasons are:

  1. The concerned employee is trust-worthy as has paid off the balances due to him for all vehicles purchased. He has been loyal to the company.
  2. The concerned employee is in good records of previous employers, so performing well on job. It shows that due to his hard working and concerned about the company.
  3. The employee shows his attitude to customer, so he has a rough behavior with clients.
  4. Serious behavior on job, which is shown by various complaints still working for the company. This could be due to his professionalism on the job.

2) The employee is defrauding the company by :

  1. Not addressing the clients properly.
  2. Not completing his work to the satisfaction of the clients.
  3. The company’s sales is going down due to his rough behavior.
  4. He might be also doing cash frauds, due to which he able to payoff all his dues.
  5. He is missing the ethical behavior of increasing sales by behaving with clients.

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