F & C International, Inc. Case 4.2 Essay

1467 Words6 Pages
Q1:
Jon Fries, Fletcher Anderson, Craig Schuster, and Catherine Sprauer are the main figures in this case and they had important responsibilities in F&C International, Inc.
Jon Fries was the President, CEO, and managing director of F&C international, Inc. He was in charge of the total management of the company. The key responsibilities of Jon Fries were to align the company, internally and externally, with his strategic vision. His duties were to facilitate business outside of the company while guiding employees and other executive officers towards a central objective. As a CEO, Jon Fries had high interaction with F&C`s independent auditors, but he misguided them by creating false documents, mislabeling inventory, and undercutting the
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As a Controller, she was responsible for supervising the quality of accounting, financial reporting of the company, and monitoring the internal control of the company. As a Controller, she was responsible for answering all the questions of the auditors and resolve all the issues brought up by the independent auditors. An employee told Sprauer that inventory barrels were filled with water in the final few days of June 1992 and there were some other fraudulent activities came in her attention but she did not mention them to independent auditors. As the management of the F&C International, it was the responsibility of all these professionals to report the illegal and fraudulent activities to independent auditors.

Q2:
Jon Fries who was the CEO of F&C Company. He orchestrated a large scale financial fraud that led to the downfall of the company. Fries used inappropriate methods to realize his company's operating results, to inflate revenues and overstate period-end inventories. He used his position to come up with a big fraud which was an unethical approach by a CEO of a Company. It was highly unethical (-100 scale) to systematically overstate sales revenues by backdating the valid sales transactions.
Fletcher Anderson was the COO of F&C Company. He was aware of some suspicious transactions in F&C`s accounting records. He also learned about Warehouse Q and that at least $1.5 million of the inventory stored in Warehouse Q could not be located or was defective,

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