Bill has just started working for a major grocery store as a check-out clerk. Mason is training him in the duties of the new position. At the end of the first day, Bill and Mason are counting the cash in their drawer and reconciling cash receipts to the cash register total. Mason says “We use a cash envelope to deal with cash differences. If you are short today, take the cash out of the cash envelope to balance out. When you have extra cash, put the extra cash in the envelope and report that you were even. This method allows you to “look good” because your cash balances out. It is easier than reporting an “error” every day when your cash is over or short. I’m so glad you will be working with us. It looks like you will catch on to the way we do business here quickly.”

That's the way I might do it, but accountants don't like that kind of slipshod accounting.

What are the ethical issues?

Who are the stakeholders? (at least 3)
How is each stakeholder you listed in #2 affected? (Be specific).
What would you do? Explain

Mason is suggesting a questionable practice to Bill in order to "look good" when reconciling the cash drawer at the end of the day. However, this practice is highly unethical and may be considered as stealing or fraud.

As a check-out clerk, it is crucial to maintain accuracy and honesty when handling cash transactions. Here are some proper steps Bill should follow in order to ensure integrity in his new position:

1. Counting the Cash: At the end of each shift, Bill should count the cash in the drawer and compare it to the total shown on the cash register. This will help him identify any discrepancies between the amounts.

2. Reconciling Cash Receipts: Bill should compare the cash register total with the receipt records to ensure they match. This will provide additional verification for the accuracy of the cash transactions.

3. Reporting Discrepancies: If there is a shortage or surplus in the cash drawer, Bill should report it immediately to his supervisor or manager. It is essential to be honest and transparent about any discrepancies, as this helps maintain trust and aids in identifying potential issues.

4. Investigating Discrepancies: If there is a discrepancy, it is crucial to investigate its cause. This may involve reviewing transaction records, surveillance videos, or even interviewing colleagues and customers. A systematic approach should be taken to identify any patterns or potential sources of error.

5. Improving Procedure: If errors or discrepancies occur frequently, it is important to analyze the cause and implement appropriate measures to prevent them from happening again. This could involve additional training, improving cash-handling procedures, or adjusting the register's settings.

Remember, honesty and integrity are vital in any position, especially when handling financial transactions. Following standard procedures and reporting any discrepancies will help maintain a trustworthy work environment and ensure the accurate handling and reporting of cash transactions.