Charles Tollison Failure

The Molex Corporation is an electronic connector manufacturing firm, which is based in Illinois. This company is facing a financial reporting problem in which the financial statements were overstated. Joe King ,the CEO of the company, was appointed in July of 2001, and was responsible for managing and inventory control, among other very important duties. Diane Bullock was hired in 2003, to replace the previous CFO. Both Bullock and King were being accused of what? by the external auditors, Deloitte & Touche, for not disclosing an 8 million pre-tax inventory valuation error.

Many pivotal managerial principles and practices are exemplified in the Case Study, Outrage at Eastern. In this particular story a manager, Charles Jackson, is faced with many difficult decisions regarding problems concerning one of his workers at Eastern Plating. One of Jackson’s workers named Marty Reid is accused of molestation of his stepdaughter. His allegations are made public in a recent writing in the “Evening Beacon”, the daily paper of the 10,000 town’s population. Reid also has his wife going against him as well, which automatically makes him guilty to the majority of the town. When Jackson reads the paper he immediately understands what he might be faced with in the next upcoming days of

Jack Early was recently hired to be one of the higher-level managers. Jack had completed his M.B.A at one of the more well-known universities, and applied his knowledge and training, that he gained in school, to his work at Rockmont. He made such a good impression in a relatively short period of time, that he received many commendations and an early salary adjustment.

Were there any early warning signs that may have predicted this type of behavior in Mr. Scrushy? “Perhaps what we need is a scale for measuring the moral development or character of the officers to whom the financial status and reports of the company are entrusted” (Jennings, 2005, p. 44-45).

Richards adopts a teleological-parochialism position 1 to justify that his actions are ethical, 2 even though they are illegal (Baugher & Weisbord, 2009). 3 Richards argues that his actions are ethical as they resulted in desirable consequences, in the form of better sales/performance figures, which met analyst forecasts and positively affected shareholder value (Radtke, 2004; Fernando, Dharmage, & Almeida, 2008). 4 He acted in the interests of his ‘in-group’ (other executives/managers), maximising their performance-based compensation, 5 at the expense of others (Barnett, Bass, & Brown, 1994). 6 Richards also claims that his actions were not serious, as recognising revenues

The Goodner Brothers, Inc. audit case is based off the story of two men who have been friends since their childhood: Woody Robinson and Al Hunt. Now as adults, Mr. Hunt works for an auto supply store while Mr. Robinson works for Goodner Brothers, Inc., a tire wholesaler in Huntington, West Virginia. In the Goodner case, internal auditors were conducting their annual inventory counts of Goodner Brothers, Inc. and determined that their numbers were lower than the book inventory numbers by $143,000. As it would with any company, the misstatement of inventory raised red flags forcing the company to contact their independent audit firm to investigate the inventory shortage. The

Another lawsuit filed in 2009 against Arthur T. caused Rafaela Evans to switch her allegiance from Arthur T. to Arthur S after the lawsuit was settled in June 2013. The allegiance shift caused a personal rift between Evans and Arthur T. and Evan’s vote switched the balance between the two cousins. When the time came for the board of directors to elect executives in 2014, Arthur T. was voted out. Although Rafaela Evans did not have the power on her own to fire Arthur T., this example of interpersonal conflict exemplifies how relationships between individuals can affect the grand scheme of organizations.

Ideally, his decision must maintain the firm’s no-layoff history, encourage the tight-knit company atmosphere, and draw as little negative attention as possible. As a new employee in his grandfather's business, he must prove himself worthy of the position he was recently controversially given. His first challenge is dealing with the declining performance of veteran employee, Russell Campbell, a strong-minded subordinate with a significant amount of influence within the firm. To make his dealings even more complicated, Russell is a

HealthSouth Corporation was one of the largest publicly traded owners of rehabilitative hospitals within the Untied States and paved the way for its industry. However, prior to 2003 the company had a very dark secret: fraud. In 2003 HealthSouth was accused of making $2.7 billion in false journal entries in the company’s system (Helios, 2013). These false entries allowed the corporation to inflate its earnings and revenue. While the corporation was dabbling in a fraudulent, aggressive account system, auditors were unable to detect the extent of the fraud occurring. If not for Michael Vines and Weston Smith, HealthSouth Corporation might have continued its false entries and continued deceiving shareholders and even Wall Street itself. HealthSouth serves as a historical example of how corporate culture can use fraud and deception schemes to not only rationalize what it is doing, which is an element of the fraud triangle, but also encourage fraudulent financial statements.

Hamilton’s auditor employed multiple tendencies. Confirmation was used in the scheme to support management when they obtained a letter from the Company’s actuary that provided the “reasonable range” for pension assumptions that had been made in the past. Management also convinced MC to allow the meeting minutes between the two companies to

In the case of “Thomas Green: power, office politics, and a career in Crisis”, it describes the dilemma of Thomas Green who works in a company called Dynamic Display. Thomas was recruited as an account executive, and then five months later, he was promoted as a Senior Market Specialist directly by the President Shannon McDonald. Thomas’s boss Frank Davis hadn’t expected to choose Green as the new senior market specialist, and he was very dissatisfied with Green’s work style and performance three months after the promotion. After being informed that Frank Davis had emailed McDonald about his concerns about Green’s performance, Green was getting really worried about his situation and not sure how to explain his perspective to

Place yourself in Hamilton Wong’s position. Would you report all of your time worked on the Wille & Lomax audit? Why or why not? Do you believe that Lauren Hutchinson behaved unethically by underreporting the time she worked on that engagement? Defend your answer.

Brenda Franklin had been serving Allied Tech for the past 8 years. As any other organisations, Brenda used to be a part of the lunch hour conversations with her colleagues. One day when her colleagues were discussing about corruption and politics, something occurred to her. As a result she prepared a list called “Ethically Dubious Conduct” and pasted it on the common notice board. Her colleagues were taken by surprise. Brenda was now anticipating the next lunch where she was expecting her list to be analysed among her colleagues.

On the Maxwell & Co. side of the Craftset assignment, there was more than one accountant assigned to the client, and there was a Senior accountant who provided supervision. Therefore, there was some segregation of duties and a senior member of the firm to verify that all work is being done correctly. With no room to wiggle, she did just enough to be able to keep focus on Rusher.

In this case, we have really two different points of view: in one side, there is Philip Anderson, the Phoenix branch manager of Stuart & Co., who manages a team with his ways, his idea, his experience but the results do not reach the targets fixed by the firm. In the other side, there is the direction of Stuart & Co., which has opposite ideas to Philip Anderson.