Description: Tracy Kitch has been found guilty of fraud over $5,000 for her misuse of a corporate credit card at the IWK Children’s Hospital in Halifax, Nova Scotia. Kitch was formerly the CEO of the well-known institution, and following allegations of misconduct in 2017, she repaid the IWK for personal items charged to the card. The charges against Kitch came in 2018 after a former chair of the IWK reported suspicious findings to the police.
Date: February 28, 2022
1) As an exercise, do some research to see if you can find out what annual salary Tracy Kitch was earning at the IWK. How does the total amount of the credit card charges compare to her salary?
1) What do you think might cause a CEO to misuse a corporate credit card?
3) Page 7-3 in Wiley’s Financial Accounting: Tools for Business Decision-Making tells us about 5 primary categories of control activities. Which of these five categories do you think would be key to encouraging proper behaviour by executives in the use of corporate credit cards?