You have recently been hired by Jenny and Brad as corporate controller. After being on the job 6 months, you are given a raise and additional responsibilities in other commonly owned corporations. One of you responsibilities is being the check signer.

You notice that you are signing checks payable to Design Emporium (a local, pricey contemporary furniture store) and Stone and Marble (a kitchen and bath tile supplier of stone and granite). You are not aware of any major rehab or design projects that are going on at XYZ Corporation or any of its divisions. You mention these checks (which are for substantial amounts) to Jenny and Brad who indicate that the procedure is correct.

How do you handle this situation? Determine what may be going on in this situation. As the company's controller, what are your ethical responsibilities? What are the personal ramifications, if any?