Case Study- The BBDE Health Center
Rural thought he had mastered accounting, and had very little interest in expanding on what he learned in is one college accounting class, 0 The company was paying the expensive for a person that did not work for DEED. There was no proof of how much the travel expenditures actually cost, but there was a reimbursement check written.
C] The CEO, was making decisions that affected the company, but didn’t include no one else in the decision. D The company was being mismanaged or not managed correctly.
It seemed as thought the company lived by a rule of, “As long you can get away with it, then your action were okay. 2. Who is being affected by the issues you identified in question 1? Are the effects good or bad? The ability of the Board of Directors (BODE) is being questioned In this case, because they are front runners In overseeing that the company correctly. With that being said the problems discussed in the first question have a negative effect on them and what they are doing.
The issues listed above are negatively affecting the company as a whole.
If things continue along this path the company could be bankrupt soon. The company could also face lawsuits for Improper use of state and mount government funding. The CEO is benefiting from this greatly. He is saving tons of money by having the company pay for his wife half of the trip, and he is keeping his Children happy by allowing them to experience the luxuries that the company gives to Its patients.
The state and county government Is being negatively affected because, they are giving money to an organization that is not utilizing correctly. 3.
List each action that the CEO, the controller, and the board of director could take at the end of the case. What would be the consequences of each course of action? CEO 1. The CEO could take accounting classes. According to the IMAM Statement of Ethical Professional Practice, each member has a responsibility to “Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
” Consequences: He would glean a better understanding of accounting principles. There will likely be a reduction in some of the work issues.
I OFF 2 1 en CEO could continue as Is – rater all en was ten mastermind Deanna company. Controller: 1 . The controller could request an independent audit by either the Government or another agency. 2.
The controller could keep the status quo; I. E not change anything. After all, he does not have any concrete evidence. 3. The controller could speak directly to the board without the presence of the CEO. BODE 1 .
The BODE can implement policies to have more frequent audits. 2. The BODE can implement a policy to change board members every 5 years or less (l think everyone has been there for at least 10 years?