Communications Memo

683 Words3 Pages
Communications Memo Legal Obligations Amid the turmoil of a sudden resignation and rumors of inappropriate accounting practices, we cannot forget our legal obligations. The Securities and Exchange Commission(SEC) is investigating our situation and requesting documentation. The specifics of these requests lead us to believe that the questionable practices may involve revenue recognition. The SEC requires that we file the following information because we are a publicly held company (U.S. Securities and Exchange Commision, 2012) . • Our directors, officers, and particular shareholders o Salaries o Benefits o Any transactions between the company and the people listed above • Our operations • Financial condition of the business o…show more content…
As we show the public what has happened, what we are doing to fix it, and why it will never happen again, they will begin to trust the company again. As long as the public perceives the communications as truthful and sincere, we can begin to repair the damage that was done to the company’s reputation (Rentz, Flately, & Lentz, 2011) . Corporation PRESS RELEASE CORPORATION ANNOUNCES VACANCY AND INVESTIGATION City, State, January 1, 2000- Questions have arisen amid the sudden resignation of our Chief Financial Officer. We would like to inform our stockholders, creditors, and valued customers of the many things that have occurred in the wake this unplanned resignation. First, we began researching our financial records, and we currently feel quite confident that only minor issues exist. These issues seem to be related to the timing with which we recognized our revenue. Internal policies and procedures are being developed to prevent this from happening in the future. While some adjustments will be made, we are striving to make those adjustments as quickly as possible. Finally, we are being investigated by the Securities and Exchange Commission. Again, we feel quite confident that these issues relate to the timing with which we recognized our revenue and that these issues will be resolved quickly. . The purpose of this press release is to inform our creditors, suppliers, customers,
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