Scenario:Julie Emerson recently changed employers from alocal motorcycle dealership in Colorado Springs to a slightlylarger dealership in Denver, Colorado. Julie is now the controller of “Mega WheelsInc.” Both dealerships sell Hurley Danielson brand motorcycles. A new Hurley model is flying out of the stores and the manufacturer can’t keep up with demand. Each region in the US has a Hurley regional manager that determines how many machines are allocated to each dealership in their region. Since the machines sell easily, success depends on these allocations. Julie’s prior employer received about a dozen motorcycles per month and therefore struggled to be profitable. Julie is curious when she finds out her new employer is allocated overone hundred bikes per month. After the first few months another item caught Julie’s attention. Every month the President withdraws $10,000 in cash and tells Julie to record it as “miscellaneous expense”. When she asked several other employees about those withdrawals she learned that the Presidentfrequently gives “gifts” to the Hurley regional manager. What are the issues Julie must address? How should she proceed?Take care to read carefully and not to “assume” too much.