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The Midnight Journal Entry Essay

Decent Essays

Case Study 2: The Midnight Journal Entry

Professional Business Practice – Section 004

Instructor: Gayle Hayashi
Paola Ferri – 100270255
Saksham Garg – 100270927
Sahiba Narang – 100287397
Reginaldo Mattos - 100285880
November 15, 2016

Stakeholders
The stakeholders in this case are:
- Richard Okumoto has the greatest responsibility because he is in charge of the accounting department of the company. He is also legally responsible for the information in case of fraud, although he cannot be personally held responsible for the act. He can lose his job before he has enough time to explain the problem to the members of the board.
- James Dooley is the person responsible for commanding the changes in the journal entries to remove the liabilities, which resulted in positive income for the period related in the case study. As a CEO he …show more content…

Whenever you have your own team altering numbers because their boss ordered and no one was brave enough to come forward with it. It is a team created on fear and not on trust under pressure.

Concerns, risks and how to minimize it
The personal risks involved for Mr. Okumoto are:
- Losing his job, which would make him lose his $ 250,000 salary and a chance of 100% performance bonus;
- Personal safety. He was receiving anonymous calls in his home to which people were trying to intimidate him.
- Another risk would be ruining the reputation he has within the market. He has invested his whole career and has many contacts, people who trained and counselled him.
Some of the organizational risks might be:
- Not reporting what happened to the DOJ (Department of Justice) and the SEC (Securities and Exchange Commission) might lead the company to legal issues.
- Another risk would be the company was talking informally about merging with another company. Therefore, improving the results would be cheating to make the other company get into business with the wrong

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