Case Study Sunshine Fashion: Fraud, Theft and Misbehavior among Employees

2. Prepare a list of the controls described in the case. What control problems are they designed to address? Are the managers interviewed for the case justified in being proud of their company’s control system? Why or why not?

2. What were the weaknesses of each of the following methods of stabilizing the industry?

The Office is a comedic mockumentary that takes place in Scranton, Pennsylvania and focuses on the lives of Dunder Mifflin Paper Company Inc. employees over the course of nine years. It has many characters, but mainly centers around Michael Scott, the regional manager, Dwight Schrute, Jim Halpert (both salesman) and Pam Beesly, the receptionist. Over its nine seasons, the show has displayed many sociological concepts, but has the most examples of deviance, sex and gender, socialization and social interaction and groups and organization. Deviance in The Office is displayed mainly through one of its minor characters, Creed Bratton.

The design and implementation and objectives of company controls are not adequate to meet the control objectives. The control environment control objective is ineffective. This control objective lacks a written policy on ethical conduct, is lacking oversight from the board of directors and audit committee, lacks a consistent style and philosophy from management, and lacks a strong commitment to competence. The risk assessment control objective is effective but lacks any antifraud program and controls. The information and communication control is ineffective. A virus has been detected and is affecting the files of the company. This control is lacking a strong IT department. The general controls financial reporting control objective is effective but is weak in detecting or preventing material misstatement. The monitoring control objective is ineffective; this control has need of an internal auditor.

As stated above this does have its disadvantages as decisions can be slow and staff can become to involved in the managing of the business.

Organizational structures have changed greatly in the last fifty years. Whereas most organizations were once rigid and centralized, most organizations are now taking advantage of flexible and decentralized structures. These new structures have affected the standard relationships between employees and managers. Additional layers of management have been created which blur the lines between the functions of managers and the functions of employees. Employees have become decision makers, and some managers barely have any authoritative power. Subsequently, these changes to organizational structures have impacted organizational strategies. This too, expounds upon the increased power of the employee and the reduced authority of the manager. The changes in organizational strategies make use of the dispersion of power in order to reduce costs and enable additional safeguards within these organizations.

4. What problems under the old system are solved or mitigated by the new system?

● Monitoring — Internal control systems need to be monitored–a process that assesses the quality of the system’s performance over time. This is accomplished through ongoing monitoring activities, separate evaluations or a combination of the two. Ongoing monitoring occurs in the course of operations. It includes regular management and supervisory activities, and other actions personnel take in performing their duties. The scope and frequency of separate evaluations will depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with serious matters reported to top management and the board.

Most of Johnson and Johnson's success can be attributed to its emphasis on decentralized management, which allows for greater focus as the

Movies often depict a glimpse into the inner workings of organizations which are complex and fascinating entities that consist of a group of people, who work together. Analyzing how the characters, as individuals and groups, interact with one another allows for an understanding of “how people think, feel and act” within an organization, also referred to as the study of organizational behaviour. The movie The Devil Wears Prada, set at Runway fashion magazine in New York City, is the story of Andrea "Andy" Sachs, an aspiring journalist who gets the job that “a million girls would kill for”. She is hired as the second assistant to Miranda Priestly, the powerful and ruthless executive of the magazine. The job is her stepping stone into the

This report will be taking a look at internal and external factors the company positively and negatively. The report will include what they do well and not so well? What issues are affecting the company at present and in the future?

Problem: Bachand was particularly concerned about how best to motivate the managers of a corporate-owned store given that they did not share in its ownership. He wondered what control system features would make sense for the Corporate Owned stores?

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

Describe Ricardo Semler 's leadership style. What do you think the advantages and drawbacks of his style might be?

What are the problems facing Philip Chin and the Hurricane Island Outward Bound? (two to three bullet points) (5 points)