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.
Respond to the following questions from chapter 1 on pp12-13. Use this document to respond to the following question using MS Word. Type your responses below each question shown below and use as much space as you need for your response. 1.2 Explain how modeling is used in decision analysis. What is meant by the term “requisite decision model”? Ans: Modeling is used in decision analysis ...
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.
Draft 12 March, 2003 "INTEROIL" LIMITED LIABILITY COMPANY SREBRENIK ARTICLES OF ASSOCIATION March 2003 On the basis of Article 317 of the Law on Commercial Companies (Official Gazette of the Federation of Bosnia and Herzegovina 23/99) (hereinafter: the Law) and in accordance with the Share Sale and Purchase Agreement concluded between Hasan Sarajliae and OMV Istrabenz Holding on 20 th December, ...
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/Statement%20of%20Ethics_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