If Sheryl Conan uses the direct method as her supervisors wants her to it will distort the cost of goods sold and hides the decline in market value. Investors and stockholders in the company would be harmed if Dick Wright’s preference is used. By using the direct method to write down inventory it would be manipulating critical information that would be used to figure out costs of goods sold; which in turn would give wrong calculations to determine selling prices and to establish profit margins. These incorrect calculations would also mislead possible future investors in the company by not clearly showing the decline in market value. Sheryl Conan should use the allowance method that would reflect that would clearly disclose the decline in market value and not use the other method as her supervisor wants her to.
Anderson didn’t do this. He swindled the investors, and the public by keeping all information quiet. Anderson did amount of contribute to the disaster when they overlooked the management by the let down to have Enron direct and enforce their own company internal controls. The flaws that Anderson had is his own internal control. There has to been beliefs the partners were more motivation by the revenues recognition, overlooking things and providing services to the company.
The Securities and Exchange Commission (SEC) sanctioned Fiedelman for failing to exercise due professional care and for failing to document the changes that his subordinates had made in the 1997 North Face work papers. The SEC’s rationale behind their allegation of Fiedelman’s failure to exercise due professional care is that he was in violation of AU Section 230 and AU Section 150. The SEC explains that, as partner in charge, it was his responsibility to document any changes to the 1997 audit conclusion of North Face (Securities and Exchange Commission, 2003). Once he neglected to record these changes, he dismissed his responsibility of exercising due professional care as partner in charge and was, first, in violation of AU Section 230 (Securities and Exchange Commission, 2003). Second, the SEC explains that this mistreatment also caused Fiedelman to be in violation of AU Section 150; he neglected his responsibility of ensuring that the process for making these changes was carried out in accordance to Generally Accepted Auditing Standards (GAAS)
Other cases discussed in class have shown the fraud being perpetrated to have intent behind it. In the DeBurger case, there is no evidence of fraud being committed with the intent of deceit. This case, however, does remind one of the Tommy O’Connell case, in where both individuals (O’Connell & DeBurger) found discrepancies throughout their audits, but waited too long to bring attention to the necessary individual(s) and even more neither had substantial evidence to back up their accusations. 2. During the audit of Marcell, the inventory was the focal point of concern for the audit staff, and the crumbling financial standing of the company made the inventory more of a concern.
Instead there should be questions geared towards business customers and a different set of questions for individual customers. It is detrimental to lump all customers into one set and assign a satisfaction rating based on the requirements of the entire group. The design of the existing system might lead James to partake in short-term actions which improve the customer service rating. By focusing all his efforts on improving the score, he may neglect satisfaction items that are not currently measured in the rating system. This will be harmful to the Financial District branch and Citibank in the long run.
3、 To increase employees who violated company contract and punished to legal. Case #2: Anne Boswin works closely with Robert Acertado The solution of the case is that: 1. Acertado violated the loyalty Code of Ethics and Standards of Professional Conduct when he downloading the model from Greenfield Financial Corporation. Although Anne Boswin developed the financial model and consent Acertado downloads, but the proprietary of the model belongs to the company, not Boswin. 2.
They should not use their power to achieve their personnel targets and objectives. What Allen did is use his authority to recruit his daughter in other company where there is business relation with this company from where many of his firm supplies from this company, and in the same time the president of this company ( Garbo ) is his friend. So what he did is involve in what we can called conflict of interest. Using his power and authority to achieve personnel objectives On the other hand what Garbo did is totally wrong, as to keep the customer which is Allen Firm he hire the vice president daughter. May be he retain the customer to increase the volume of the sale but in the same time he breach the procedures and the policies of his HRM organization, as in every organization there must be procedures and process in recruitment, and some conditions should be available in applicants to be recruited like qualification and experiences, but this was not the case while he recruited Amber, and there will be adverse impact when nepotism used in any organization, as it will destroy the employees morale, and for sure this will be having negative impact on the efficiency and productivity of the others employees as they will feel that KPI will not work honestly as the close relationship with president will be more effective.
Subject： | Case Summary: Ipremier Case | Situation Ipremier was attack by some reason that the website was locked up and customer was not able to access it. The systems seem operated well so the staff did not know what exactly happen and how to solve it. At the time of the attack, Ipremier worried about the security of customer information and the impact of stock price. The employees were tried to solve the problems and minimized the influence of the situations. However, they have problem to access the Qdata headquarter because of the internal policy and they do not know what is the best way to solve the attack for example to pull the plug or not?
The Ethical Dilemma of Outsourcing. This paper will examine the phenomena of outsourcing from an employee and corporate perspective in an attempt to gain insight into the pros and cons of the outsourcing issue. The researcher proposes that outsourcing is morally and ethically an objectionable practice; the results show little benefit to the company and much harm to the employees it effects. A formal review of the literature available with regards to outsourcing is analyzed, and the case against outsourcing is made. The researcher shows how outsourcing impacts workers in a negative manner, goes against the moral and ethical standards inherent in business and proves that outsourcing will ultimately result in dissatisfaction for corporations in the long term.
Now I would like to discuss the characteristics of a psychopath listed by DSM with a reference to th corporations: Failure to conform to social norms: here, lawful behavior is the key topic. Psychopaths do not adapt their behavior to fit into the society, they rather look for an opening to use in order to fit the society to their behavior. So do the corporations. Very often corporations look for a situation (mostly in law) to take advantage of it using their workers as tools and means to reach their goal of power and profit. Deceitfulness: deceiving others for one's own welfare, not restraining from conning and telling lies.