What kinds of risks does a firm like Amazon.com face with
respect to safeguarding its assets? What types of controls do you think it
already has in place to minimize these risks?

Go to the firm’s website and click on “Investor
Relations”. You’ll be able to find the firm’s annual report to help you
answer these questions. Are any specific controls mentioned in the annual
report?

What depreciation method does Amazon use for property and
equipment?

What is the range of useful lives for buildings and for
fixtures and equipment?

Do these useful lives make sense? Find the heading Goodwill.

What type of an asset is goodwill? Does Amazon write off
this asset? Explain what the company does.

TOPIC 2

Susan works in a real estate office that is equipped with
up-to-date copiers, scanners, and printers. She is frequently the only employee
working in the office in the evenings and often has spare time to do personal
work.

She has begun to use the office equipment for her children’s
school reports and for her husband’s business. Do you think Susan’s use of the
office equipment is harmless, or is she behaving unethically? Why?

If you believe her behavior is unethical, what controls
could be in place to prevent it? Have you ever used office resources for
personal tasks?

Under what conditions could such use of office resources be
justified?