[Unique Solution From 10/Pg] Star Walk Limited

You work for Star Walk limited, a large private organisation as the assistant financial controller. One of your duties is to reconcile the sales ledger each month. The ledger has failed to agree month after month.

You strongly believe that it is associated with a number of bad debts being written off on the individual customer account but not included in the nominal ledger.

You consider the differences to be material and have brought this to the attention of your superior officer who is the financial controller but he seems unwilling to act. You consider his behaviour as unethical.

Required:

  1. Discuss how the above scenario would affect the financial statement of Star Walk limited.
  2. As a professional accountant, discuss action(s) that you would take in this situation
 

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