Describe any specific internal controls that might have prevented this situation.

Review the Case Study: Atlas Cold Storage Inc. (Links to an external site.)

Cheating occurs at many levels within a firm. In the case study, the president engaged in several questionable activities with the company’s financial statements. What might have been the ethical decision that Ernst & Young (E & Y) faced with the client?

  1. After reading the charges made by the OSC, explain how a deontological approach may have helped avoid each charge.
  2. What are the duties of management and ownership in regard to the stakeholders of Atlas? In what ways did management fail?
  3. What items should have been noticed by the auditors?
  4. Describe any specific internal controls that might have prevented this situation.