This paper will focus on consequential effects of ethical and unethical financial reporting, and the cascading affects on all supporting investors of Riverside Bottling Company. Background Riverside Bottling Company has secured a substantial insurance loan, which requires the general ledger to maintain at least a $200,000 monthly balance to avoid penalty charges as specified in the loan agreement (Weygandt, 2008, p. 382). For the month ending June 30 the balance of cash resulted in a $120,000 deficit. As the assistant controller, I report the discrepancy to the financial vice president, Gena Schmitt. Gena instructs that the cash receipts ledger to remain open for an additional day, as a $150,000 payment will post to the bank on July One from Oconto Distributors, and recorded as part of June’s receivables, which fulfills the requirements of the loan agreement, but misrepresents true closing receivables (Weygandt, 2008, p. 382).
Kevin Pfeiffer, a computer technician on new hire probation, was asked to act unethically in regards to an insurance claim. He made an ethical decision to not participate in the unethical practices of insurance fraud carried out by the organization. Kevin’s manager, Antonio Melendez was familiar with the rumors of the alleged insurance fraud; however, this was the first time a fraud situation was brought to him directly. This analysis will focus on the ethical dilemma faced by Antonio and discuss strategies for addressing the situation. Analyze the ethical dilemma faced by Antonio The ethical dilemma that Antonio faced was weather to report the issue to the proper corporate officers himself, have Kevin Pfeiffer make his own decision regarding the issue, or ignore the issue altogether because the insurance proceeds will benefit the organization as a whole.
This concept is especially important when a company such as, Riordan Industries ponders an IPO. Currently Riordan Manufacturing and Riordan Industries are each privately held with only their current president and Chief Executive Officer (CEO) Dr. Michael Riordan to answer to. Once the IPO transpires and shareholders own the company, the shareholders or new board of directors may not like the job Dr. Riordan is doing, and he could be replaced. This same scenario could prove true for the Chief Operating Officer Hugh McCauley, each of the top vice presidents, directors, or operation managers as his or her once secure positions are under public scrutiny. Even more scrutiny for Riordan to consider would be answering to the regulations of the Securities and Exchange Commission, and Sarbanes-Oxley (Michael Davis, 2000 Volume 3 Issue
Khristine Jackson Week 2 Homework July 19, 2014 The Sarbanes-Oxley Act of 2002 (SOX) was a direct output of the financial statement fraud that sank industry giants such as Enron and WorldCom. 1) What are the primary goals and tenets of SOX with respect to fraud? The primary goals and tenets of the Sarbanes-Oxley Act of 2002 (SOX) are to concentrate on improving the value of audits in an effort to remove fraud in order to keep the public’s attention as well as for the security of investors. In addition, SOX requests corporate management to be more accountable for both fraud prevention and detection. Similarly, corporate board is also more responsible for the occurrence of fraud with the company; under SOX, those who contribute in
In 2008, the parent company that owns University of Phoenix online, Apollo Group, was found guilty of securities fraud and ordered to pay $270 million to a group of investors. The unethical dilemma stemmed from a report that was very crucial of the enrolling practices of the school that the company refused to disclose. The company believed that the report was
Financial Statement Fraud Schemes Taisha Ransom ACC-556 September 30, 2013 Kimberly Warren Financial Statement Fraud Schemes Financial statement fraud is the “deliberate misstatements or omissions of amounts or disclosures of financial statements to deceive financial statement users, particularly investors and creditors” (Wells, 2011, p. 6). A fraud investigator has been assigned to Apollo Shoes, Inc. to determine what type of fraud schemes are likely to be present in the company. The investigator will make this determination based on the nature of business at the company and any evidence presented. The following brief will describe evidence the fraud investigator must collect to determine if fraud is present. The briefly will also
PA402: Employment Law Unit 9 Assignment: Employer Responsibility under the ADA Act Memo To: Peter Gregory, Chief Executive Officer From: Attorney, Clayworks Communication Limited Date: June 21, 2015 Subject: Disability Discrimination Claims Overview One of our employees who has epilepsy has approached me with some flimsy allegations that he believes constitute disability discrimination. As the attorney for this company, I am required to act swiftly to save the face of the company from being dragged in the courtrooms. It is for this reason that I have written the report on ADA law. Please find it enclosed. Possible Damage to Business Relations The main reason for doing this memo is the adverse effect that the court file could
Does working in teams make people less receptive to outside input? How can social comparisons undermine trust in working relationships? How do the training and technical knowledge entrepreneurs take from previous employers impact the success of their new ventures? Wharton professor Jennifer Mueller and lecturer Julia Minson, and professors Maurice Schweitzer and Evan Rawley, respectively, examine these issues, and what they mean for business, in recent research papers. Confidence's Cost to Collaboration The corporate formula for innovation often focuses on creating a team of experts to cook up the next big thing.
The senior most executives drew up strategies in line with their business’ goals which were then communicated down the organization’s management structure for implementation. At corporate level, strategies were drawn up towards decision on business growth, competition resource allocation etc. However, strategic management is applied in assisting a company to realize and react to changes in their business environment such as stock market fluctuations, technology advances, public criticism, accidents and natural disasters. In many incidences, changes in business environment which are obvious are not detected early enough, and such businesses suffer the boiled frog phenomenon (Pollard, 2004). Enron is an example of the boiled frog phenomenon.
Sergio Marchionne Undertakes Culture Changes at Chrysler Group Simon Ware Excelsior College Author Note This paper was prepared for Organizational Business 311 and taught by Professor Gregory Gotches Sergio Marchionne Undertakes Major Strategic and Culture Change Chrysler Group In the new companies of today there is lots of competition and there are lots of competitors to go after the business. If a company doesn’t do things right they risk the possibility of having their doors shut forever. These results are affected by a number or variables such as profit line margins, corporate social responsibility, shareholder happiness, consumer perception and also their Organization Culture. Today I will be addressing the later of these examples which is the organization’s culture. Organization culture is one of the most important yet often overlooked aspects of many businesses today.