You are a new summer intern working for a major professional services firm. during your lunch break each day, you and a fellow intern, bob, eat at a local sandwich shop. one day, bob’s girlfriend joins you for lunch. when the bill arrives, bob pays with a company credit card and writes the meal off as a business expense. bob and his girlfriend continue to be "treated" to lunch for a number of days. you know bob is well aware of a recent memo that came down from management stating casual lunches are not valid business expenses. when you ask bob about the charges, he replies, "hey, we’re interns. those memos don’t apply to us. we can expense anything we want. does bob really believe that what he is doing is not wrong? does it matter? what are you going to do about it?

1. Bob is aware of what he is doing. He knows it is wrong.

2. It matters.

Explanation:

Bob is committing fraud against the firm. Because he received the memo from the business organization that casual lunches are not business expenses.. Bob acted on purpose as he and his girlfriend who is not an employee are enjoying benefit from the firm by making the meals to be business expenses, when he is aware that they are not. Thus, it can be said that Bob is committing fraud against the business.

2. Yes it matters and as an employee of the business, I'm going to speak to Bob and explain to him that he is going against company policy. And it could constitute as employee embezzlement.

Since the expenses that he is writing off as business expenses is completely invalid. The fraud would be reported to the management because failure to might put me at risk by making me an accomplise to the fraud.