Reference no: EM132729131

Mr. Bill is the sole proprietor of a small play-dough production company. Over the last few months, he noticed revenues dropping and started wondering what is going on. After giving it much thought, he realizes that his accountant, Mr. Pringles, has been cooking the books and stealing money from him-at least that seems to be the case. Mr. Bill is pretty upset and immediately runs down to the local courthouse and files a complaint against his accountant. Too anxious to wait for the legal process to continue, Mr. Bill decides to go to his accountant's personal residence and search for evidence of fraud. To his delight, he finds some papers that document his accountant's illegal activities.

• Mr. Bill hurries to the office, where he confronts his accountant and shows him all of the papers he found at his house, informing him that a complaint has been filed. Mr. Pringles, calmly laughs and walks away, apparently not affected at all by what Mr. Bill has told him.

Problem 1: Explain why Mr. Pringles is not worried in the least about Mr. Bill's discovery.