Report on Loose Control of a Family (Lab Report Sample)
The paper was to report on the findings of the company that was under the management of White and Smith. It was to show the mistakes that the management made in their different appointments within the company. It also aimed at highlighting the corruption that was taking place in the company. The paper was to recommend the best solutions that would save the image of the business and put it in the correct direction of success.source..
REPORT ON LOOSE CONTROL OF A FAMILY OF NOT-FOR-PROFITS
View of the Events That Occurred
Control over the company assets had been left under Barbie White and Butch Smith, who are in a relationship. The use of the asset had minimal supervision even from Louise. This makes fraud inevitable due to lack of sufficient checks (Gelinas, U. J. 2010, 89). Previous year audit papers attest to this too.
Barbie White proves inefficient since client assistance work assigned to her has not been attended for a fortnight. She closes the book of accounts in one company without completion and starts working for another company. This leads to delays in drawing up company accounts (ISACA, 2010, 87).
She also lacks knowledge of the school and RHI, which contains a huge percentage of company transactions and hence, poses a high risk. Cash and miscellaneous income increase due to her ignorance of company operations. This puts the company financial health at risk (Romney, M. B. 2009, 44). She quits later for lack of proper skills.
Hiring Charles Brown as an investment in the company accounts was appropriate. This prompted Louise to direct Barbie to address George’s questions and concerns. It is from Barbie’s documentation of financial records that George realizes a risk of fraud and abuse within the company.
Lack of integrity and cooperation among the staff led to misuse of company assets (Gertz, M. 2002, 65). Buck Short had another business being run with the company staff and equipment (Hall, J. A. 2011, 54). Various fictitious payments were submitted to the bank for payment. A record for the generator that was bought was never made. This is attributed to poor coordination. Punishing fraudulent staffs and rewarding active workers was appropriate since it helped to salvage the company from heavy losses (Chorafas, D.N. 2001, 23).
Weaknesses in the Accounting System
Poor Cooperation among Workers
Barbie feels angry when asked to provi...
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