1. What decisions or actions taken by the individuals in this case are questionable? ? The first problems identified in this case was that the company had no laws and regulations. ? No one was willing to stand up to the CEO and tell him where he was going wrong. ? The CEO is more concern about the color of the carpet laid than setting corporate strategies. ? He ignored all the important issues in the company. ? Mr. Rulan thought he had mastered accounting, and had very little interest in expanding on what he learned in is one college accounting class, ?
The company was paying the expensive for a person that did not work for BBDE. There was no proof of how much the travel expenditures actually cost, but there was a reimbursement check written. ? The CEO, was making decisions that affected the company, but didn’t include no one else in the decision. ? The company was being mismanaged or not managed correctly. It seemed as thought the company lived by a rule of, “As long you can get away with it, then your action were okay. 2. Who is being affected by the issues you identified in question 1?
Are the effects good or bad? The ability of the Board of Directors (BoD) is being questioned in this case, because they are front runners in overseeing that the company correctly. With that being said the problems discussed in the first question have a negative effect on them and what they are doing. The issues listed above are negatively affecting the company as a whole. If things continue along this path the company could be bankrupt soon. The company could also face lawsuits for improper use of state and county government funding. The CEO is benefiting from this greatly.
He is saving tons of money by having the company pay for his wife half of the trip, and he is keeping his Children happy by allowing them to experience the luxuries that the company gives to its patients. The state and county government is being negatively affected because, they are giving money to an organization that is not utilizing correctly. 3. List each action that the CEO, the controller, and the board of director could take at the end of the case. What would be the consequences of each course of action? CEO – 1. The CEO could take accounting classes.
According to the IMA Statement of Ethical Professional Practice, each member has a responsibility to “Maintain an appropriate level of professional expertise by continually developing knowledge and skills. ” Consequences: He would glean a better understanding of accounting principles. There will likely be a reduction in some of the work issues. 2. The CEO could continue as is – after all he was the mastermind behind the company. Controller: 1. The controller could request an independent audit by either the Government or another agency.
2. The controller could keep the status quo; i. e not change anything. After all, he does not have any concrete evidence. 3. The controller could speak directly to the board without the presence of the CEO. BoD 1. The BoD can implement policies to have more frequent audits. 2. The BoD can implement a policy to change board members every 5 years or less (I think everyone has been there for at least 10 years? They may have gotten comfortable). 3. The BoD can establish regulations regarding family members’ use of the company’s resources.
4. The board can bring in Leadership Trainers for all the board members; they will help with the CEO micromanaging everybody. 4. Consider each of the actions you identified in the previous question. What do you think each individual or group should do? What do you think each individual or group would do? Explain. CEO I think the CEO should take some accounting classes, but I think he will continue as is. Mr. Rulan believed he mastered accounting a long time ago so, for him to take those classes would be asking a lot. Mr.
Rulan seems stern in his thinking, therefore, I believe he would have to swallow his pride deeply to sit in those accounting classes. Controller I think the controller should request an independent audit, but I believe he will speak to the BoD. He knows something isn’t right, but has pin pointed to what is exactly. BoD I think the BoD should implement policies to have more frequent audits, and believe they will do just that. The more red flags thrown up the more curious the board members will become. 5. The Institute of management Accounts’ Statement of Ethical Professional Practice can be found at http://www.
imanet. org/PDFs/StatementofEthics_web. pdf. What guidance does the statement offer Don Blake? Which of the standards apply? Do you think the guidance provided by IMA is appropriate for this situation? Defend your answer? Yes, the guidance provided by IMA, is appropriate for this situation. This statement told Don the steps in rectifying the problems or situations he believes are unethical in the company. It also points out the chains of commanders to go through if the above supervisor doesn’t resolve the problems
Based on the file that I attached please view and read it first and then following the instruction below and finish it and submit it on time. Thanks
Describe your sales and logistics strategies. Your essay must answer the following questions: How are you going to market your product or service to your potential customers? For example, will you sell exclusively on line or through distributors? Will you develop a brochure or a data sheet? Where and when will you advertise? How much is your marketing going to cost? How will you use technology to assist you? Research advertising media and distribution costs. Explain how you arrived at your estimates
Describe your operations. How specifically will you make or obtain your product or provide your service? What is the special equipment or special skills that will be needed of the making it? What kind of space will you need: Will you need a factory or retail space, for instance? How many square feet? Research development costs. Explain how you arrived at your estimates.
You must attach a PDF file showing at least one of the websites that you visited to find your facts and figures.