Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Respond to two or more of your colleagues in one or more of the following ways:
• Comment on the scenarios and remedies presented by your colleague, providing your insights based on your experience or knowledge.
• Suggest additional steps that managers might take to ensure accurate data and provide examples of when such steps have been taken, including the resulting outcomes.
• Ask a probing question of your colleague, based on your readings from the week and/or your experience. You should be sure to include the context for your question and why it is important to address.
• Compare your colleague’s situation with the one you presented and share any insights you gained.
Develop your responses based on your own experience, the resources for the week, and additional research.1st Colleague to respond to:
Impact of poor accounting practices in business operations.
According to Zimmerman (2017), when companies fail to adhere to the established rules of generally accepted accounting principles (GAAP), they run the risk of promoting unethical behaviours and making poor business decisions based on inaccurate information (p. 3).
During my time as Operations Manager at a manufacturing company, the company came under severe pressure from the board and shareholders for encountering two successive years of failing to achieve the target profit levels. In response, the Chief Accountant in conjunction with the GM devised and executed a complex scheme to turn the company fortunes which eventually lead to the company’s demise. Between the warehouse and production environments, significant losses occurred from damage to raw material inventory in handling because of improper handling due to the absence of appropriate equipment. This was by far the largest expense for the company. Rather than addressing the root of the issue, they decided to underreport and in some instances omit the losses altogether associated with bad inventory. Additionally, we had numerous contracts to supply products to customers on a scheduled delivery basis over periods of up to 12 months. When performance pressures were mounting, they began recording revenue from the sale of goods that were still in inventory and in some cases not scheduled for delivery anytime soon. The net effect of the actions was that there was an inflated net income which translated into improved financial performance. Consequently, the executive leadership deferred plans to undertake major restructuring and based on the information, made a commitment to pay large bonuses and profit shares when in reality, the company could not have afforded it. By the time the matter came to light, the company was so far behind that half the staff compliment lost their jobs and significant contracting of operations had to take place.My proposed response to the situation described above.
In preventing unethical behaviour it is important that appropriate checks and balances are maintained as well as clear consequences for breaches (Zimmerman, 2017, p.3). To begin remediating the unfavourable situation above I would commission an immediate audit to formally identify all irregularities for action. By doing so I would be establishing a known starting point where records are as accurate as possible. Simultaneously I would undertake a review of all financial-related policies and procedures to ensure they align with industry standards and best practices then promulgate that information to all stall along with the consequences of any deviations. This would be complemented with structured training sessions where staff would sign confirming their participation. Finally, at least once quarterly I would require that synopsis of the financial year to date be prepared and presented to the management team for review. This would introduce an avenue for the asking of searching questions and increase the likelihood of identifying any anomalies or irregularities early enough to take timely action (Sherman & Young, 2001, p.131). Finally, very strong actions would be taken against the culpable individuals whose actions or inactions led to the unfavourable situation.
Measures to ensure that financial statements tell an accurate performance story.
According to Sherman & Young (2016), the nature of financial statements is such that skilled custodians can employ a number of processes to obscure or misrepresent financial information (p. 82). It, therefore, requires a multi-level approach to ensuring that all information is factual and accurately represents a company’s realities. Decisions based on erroneous financial information exposes both managers and the company as a whole, to unfavourable outcomes. Therefore the following measures can be implemented at a minimum to minimize the likelihood of financial improprieties and ensure the accuracy of financial reporting is maintained:
1. Ensure clear policies and procedures are defined and communicated company-wide.
2. Ensure that there is sufficient segregating of duties for primary accounting functions such as recordkeeping, transaction authorization and reviewing/auditing. Litchfield (2011) reinforces the point that lax internal controls expose organizations to abuse and fraud particularly when there are insufficient levels of segregation of duties.
3. Ensure that an atmosphere of strict control with appropriate consequences for deviations is maintained from management all the way to the lowest staff.
4. Implementing at a minimum, annual auditing of the books by an independent external auditor. Among the benefits presented by annual audit reports is a guaranteed structured review of financial records and procedures, the identification of weaknesses in accounting procedures and the creation of an avenue for correcting financial problems (Flicek, n.d.).References
Flicek, J. (n.d.). The Importance of an Annual Audit [Blog]. Retrieved from https://hub.associaonline.com/blog/the-importance-of-an-annual-audit
Litchfield, R. (2011). Accounting that kills. Profit. Jun2011, Vol. 30 Issue 3, p84-85. 2p.
Sherman, H., & Young S. (2001). Tread lightly through these accounting minefields. Harvard Business Review, 79(7), 129-135.
Sherman, H., & Young, S. (2016). Where Financial Reporting Still Falls Short. Harvard Business Review. Jul/Aug2016, Vol. 94 Issue 7/8, p76-84. 8p.
Zimmerman, J. L. (2017). Accounting for decision making and control (9th ed.). New York, NY: McGraw-Hill.2nd Colleague to respond to:
I don’t have professional experience directly related to accounting and decision making so I decided to research a situation where fraudulent financial information was provided by a company. I’m sure everyone is familiar with the Wells Fargo fraud case that went on from 2002-2016. If you’re not familiar, Wells Fargo employees used fraud during this time to meet impossible sales goals (Flitter, 2020). They created fake accounts in customers’ names, signed them up for credit cards, and transferred funds from their accounts into other accounts (Flitter, 2020). It was discovered that these orders came from management as high as the executive levels. This caused the CEO to step down and resulted in Wells Fargo paying billions of dollars.
Unethical behavior is never okay in my book. It is extremely important for organizations to hire employees who are trustworthy, especially when they have financial responsibility within the company. If I were one of the Senior executives at Wells Fargo and came across management encouraging fraudulent activity, they would be terminated right away. A business cannot run without the trust of its customers. If their trust is compromised at the fault of our leaders and employees, it is damaging to the brand and could be detrimental long term. In addition to termination, depending on how serious the fraudulent activity was, I would also press charges. Seminars and trainings would be at the forefront of the agenda for any new and remaining employees to stress the importance of ethical behavior.
It is important for the public to recognize a company for what is true. Wells Fargo acted as if they were one of the most successful and powerful banks out there. For years they built their reputation on several lies without any concern with how it effects their customers and their brand. As a manager, I would be sure to include checks and balances as part of the normal routine for reviewing the organization’s financial information. Accuracy is important from both an ethical and a business standpoint. The use of fraudulent information would be completely prohibited and I would be sure to let everyone know of the serious consequences if used in any way.
Reference
Flitter, E. (2020, February 21). The Price of Wells Fargo’s Fake Account Scandal Grows by $3 Billion. Https://Www.Nytimes.Com/#publisher. https://www.nytimes.com/2020/02/21/business/wells-fargo-settlement.html
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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