George is an Internal Audit Manager at Bask Bear Corporation. He has conducted information system fraud investigation when there was a red flag during the internal audit findings. Copies of relevant information system reports, cancelled checks from the corporation's bank, supporting cash disbursement authorization forms were analyzed, and a thorough review of the accounts payable department's operating procedures was initiated.

George discovered Metilda who is the account payable clerk, had forged six cash disbursement authorization forms; which contained vendor invoice data (e.g. vendor name, vendor address, invoice number, and invoice amount). Metilda then input the data contained on the fraudulent accounting forms into the accounts payable accounting module under her own vendor account. Input controls help ensure that all data is captured in an accurate and efficient manner. Furthermore, while Metilda's supervisor was away on vacation, she was assigned responsibility for performing the semi-weekly cash disbursement run. Another key aspect of this fraud involved the printing and mailing of the physical checks to Bask Bear's vendors. In order to accomplish this task, Metilda was allowed access to the main safe where pre-signed checks were stored.

After two hours being interrogated, Metilda later confessed to the crime and explained that she was forced to steal from Bask Bear Corporation because she was diagnosed with a terminal illness and had no personal assets or health insurance with which to pay for the treatments. The money from the fraud she committed was spent totally for her treatments and medications.

Required:

From the case above it is clearly an ethical dilemma situation involving accounting information system. If you are in George position, what will you do?

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