...Katy Chilton Danle Case 08-9 Case 08-9 Fraud and Illegal Acts We have been hired to perform an audit of Jersey Johnnie’s Surfboards Inc. (the “Company”), which is an SEC registrant. Before completing the December 31, 2005, audit of the Company, Harry Hodad, the engagement partner, received a call from Tom Tube, the Company’s director of ethics and compliance. Mr. Tube said that the Company’s outside service provider that receives calls to the Company’s ethics and compliance hotline had informed him directly that the hotline had received a call alleging certain accounting improprieties as well as concerns about management’s overall commitment to accurate financial reporting. The transcript of the call was provided to the engagement partner and is included as Attachment I. Required: What steps should management, the Board of Directors, or the Audit Committee of the Board of Directors take in response to allegations of possible fraud or illegal acts? The steps that management, the Board of Directors, or the audit Committee of the Board of Directors should take in response to allegations of possible fraud or illegal acts are that they should pay extra attention to transactions, accounts, issues, or situations that could indicate fraudulent behavior or illegal acts. When they are more aware of information that could lead to a fraud discoveries or illegal acts they should determine if fraud or illegal acts are possible. The next step is to see if possible fraud and...
Words: 2065 - Pages: 9
...In today’s world the role of CFOs have changed a lot compare to the traditional CFOs we were once accustomed to. CFOs today are more of Strategic planners compares to the ones in the past. According to the article “we are not only seeing more CFOs with diverse business backgrounds, but we are also seeing CFOs evolve from their traditional role as gatekeepers”. The author here is talking about how business oriented and strategic today’s CFOs needs to be in order to enables company growth. The CFOs focus has shifted not only from managing return on investments (ROI) but also growth. The author has indicated that many CFOs today are in the same level with CEOs as primary drivers of the corporate growth. In short, in order for a company to continue to grow CFOs have to be more of strategist in order to assist in growth planning. Having said that, in order to make that transition easy there are seven habits that can help today CFO’s to transform from a traditional CFO to a brand new agent of change. 1) Habit- It’s important for CFOs to take a seat at companies meeting for strategy formulation. CFOs should be a part of regular executive meeting with CEOs and other corporate executive where they can discuss growth. This is important because CFOs can bring investors perspective and evaluate financial implication of most corporate projects 2) Define and Manage Return Expectations- Here a strategic CFO must be able to interpret each division of a company/corporation differently and...
Words: 528 - Pages: 3
...Implementing Leadership Change Gene One is a biotechnology company that has had success with engineering foods that are disease free and grow at increased rates. Vegetables such as tomatoes and potatoes have been grown without the use of pesticides and other harmful chemicals. These breakthroughs have changed Gene One from a $2 million start-up company into a $400 million company on the verge of going public. The original members of Gene One are challenged with organizing the company and preparing it for an initial public offering (IPO) on Wall Street. The IPO requires the company to make several changes to the structure of the company’s executive board, marketing strategy, and product invention. Leadership at Gene One must identify weaknesses in management concerning the IPO, and the stress associated with going public. Management is challenged with accomplishing one of the following: 1. Gene One becomes a public company and the goals suggested by the chief executive officer (CEO) are met by adding new people to the existing staff and retaining the team’s culture. 2. Gene One becomes a public company and the goals suggested by the CEO are met by removing people and changing the company’s culture. Both of these options require management to move forward with the IPO and to make stressful decisions concerning the company’s future. Dealing with the stress of the change will determine the success of the IPO. “In an intelligently managed organization,...
Words: 1999 - Pages: 8
...Succeeding the Founder How to Lead a Successful Transition as the Successor Photo Copyright © 2012 Judd Patterson Photo Copyright © 2012 Judd Patterson Reprinted by permission from The CEO Advantage Journal, a publication of CEO Advisors, LLC. Visit w w w.tcajournal.com. by Ben Anderson-Ray and John Kobasic N AUGUST 24, 2011, Steve Jobs resigned his role as Apple CEO and was replaced by Tim Cook. This followed a seven-month period in which Cook was already functioning O O as CEO while Jobs focused on fighting the health problems that ultimately took his life on October 5. Many are watching to see how this unique leadership transition will work out for Apple, but it is not the first unique leadership transition they have faced. Jobs, of course, was the cofounder of Apple, but organizational infighting led to his ouster when John Sculley took over in the mid-1980s. Sculley oversaw the growth of the Macintosh and thus the company, but when that growth slowed and new internal issues arose, a series of CEOs failed to get the company back on track. In 1997, a more experienced Jobs returned and drove tremendous growth. The leadership history of Apple is a good reminder that a leadership transition–particularly one involving the founder– presents both risk and opportunity to any organization. If done poorly, it spawns uncertainty, conflict, and stress, stalling growth and exacerbating misalignment that may or may not have already been there. If done well...
Words: 2328 - Pages: 10
...for an IPO and want to head full force for it. Unfortunately, this is an all new theory for all of them as they knew the general course of action but need a change strategy and an end vision. With strong individuals such as, Don Ruiz CEO, Michelle Houghton CFO, Teri Robertson CTO and Greg Thoman, Gene One has the brainpower to flourish. They will not flourish, conversely, if there is no participative influenced strategy to pull everyone together and forward. Without this the strong willed individuals will continue to counteract each other and Gene One will stay at an impasse. With this counteractive mentality, there will be no cushion of security for every individual within the company to rely on. With no cushion of security Gene One employees will not give a team based effort and the organization itself will fall apart. Gene One will face many obstacles and likely fail unless they create and employ an organizational change. This organizational change should consist of leadership changes, teams and organizational culture. Leadership changes will outline the style and duties of each leader within the organization. This is the best time to educate the leaders on the Sarbanes-Oxley Act and how it directly affects the CEO, CFO and Board of directors.The second most important change will have to be that of the restructuring...
Words: 1275 - Pages: 6
...The traditional, evolved and transformational role of CIOs Mawuena K. Raven University of Maryland University College Abstract There is no doubt that organization since the 1990s are viewing information technology (IT) as an integral part of their strategy for the future. It is not seen only, like in the past, as a simple tool to communicate and decrease production costs, but there is a total recognition on the role it plays and continues to play in business performance and strategic planning. A situation that is necessitating a similar makeover and transformation of IT departments are structured and run. It is how the Chief Information Officer (CIO) came about, as a direct result of this shift. There is not a single and universal way of defining the CIO and his or her job description and responsibilities he or she might have within an organization depend on its structure, and how the organization is trying to achieve throughout the position. Nevertheless, and until recently organization hire CIOs as "simply department managers who ensure that all PC's can be turned on and that the processes work". But, because and like never before, businesses are relying on information technology to gain competitive advantage, the job and responsibilities of the CIO is evolving, making the position that can help transform the entire organization objective by innovating and sustaining its core competencies and knowledge that will...
Words: 3623 - Pages: 15
...market opened, shares sold at $17 dollars. At closing the price per share was $23.89, an increase of 40.5%, netting Tesla 226.1 million in funding. Investors saw potential in a company with a vision of the future that was back by an emerging Elon Musk. Elon Musk was born June 28, 1971 in Pretoria, South Africa. After earning a degree in physics from the Universty of Pennsyvania and a degree in business from the Wharton School at UPENN, Musk started Zip2. The web software company was sold for $307 million dollars. He received 7% or $22 million dollars from the sale. Musk moved on to co-found PayPal which was aquired by E-bay in 2002 for $1.5 billion in stock. The early growth of PayPal can be credited to the campaign created by Musk. Waisting no time, Musk founded his third company, Space Exploration Technologies(SpaceX), in 2002. With Musk as the CEO and CTO, SpaceX would become the first commercial company to dock with The International Space Station and return cargo. At Tesla he is the current CEO and Chief Product Architect. Working towards a sustainable energy economy where electric vehicles play a pivotal role in the transition has been Musk's central interest for 20 years, making Tesla a perfect fit. His vision would be out of reach without the rest of Tesla's...
Words: 1047 - Pages: 5
...post it in the Week 4 Writing Assignment 2 Revision Dropbox by midnight Sunday. Please use the following basic formatting: • Memo heading (see page 87 of the textbook) • One-inch margins all around • Left-only justification • 12-point regular Times New Roman font. (Although 11-point Calibri is Word’s default font, serif fonts like Times New Roman are more reader friendly for longer texts because the serifs draw the eye forward, while sans-serif fonts like Calibri are more effective for very brief texts in which you want to hold the eye.) Please let me know if you have any questions at all the about the assignment or the procedures for submitting it! Writing Assignment 2 Persuasive Message - Convincing the CEO to Approve a Public Relations Plan You are the director of public relations for Easy to Be Green, the innovative new company that helps homeowners, businesses, and municipalities become more...
Words: 2227 - Pages: 9
...DNA of the CFO A study of what makes a chief financial officer 2010 Our thanks to nearly 700 CFOs who participated in the study and, in particular, to those who shared their insights and personal experience of the role in a series of interviews: Giacomo Baizini CFO, Evraz Ben Noteboom CEO, Randstad Srikanth Balachander CFO, Bharti Airtel Caroline Raggett Managing Director, London financial officers’ practice, Russell Reynolds Associates Evelyn Bourke CFO, Friends Provident Stephen Carver Media and crisis management expert, Cranfield School of Management Ian Dyson (formerly) CFO, Marks & Spencer Luigi Ferraris CFO, Enel Andy Halford CFO, Vodafone Simon Henry CFO, Royal Dutch Shell René Hooft Graafland CFO, Heineken Juha Laaksonen CFO, Fortum Patrick Regan CFO, Aviva Simon Ridley FD, Standard Bank Hans-Peter Ring CFO, EADS Sue Round Head of Investments, Ecclesiastical Robin J Stalker CFO, Adidas Firoz Tarapore CFO, Dubai Aerospace Enterprise Tim Tookey CFO, Lloyds Banking Group Rob Murray CFO, Coca-Cola Hellenic B Document title Additional text In this report Executive summary 2 Contributing to strategy 4 A broader business role 6 Core competencies remain key Future focus on stakeholder communication 10 12 and 18 The CFO’s contribution 14 Staging post or career destination? 20 A toolkit for the aspiring CFO 22 Demographics 26 What makes a CFO 28 Ernst...
Words: 15852 - Pages: 64
...after a long tiresome day: your whole body aches, all you want to do is sit down and relax, and the only thing on your mind is a warm satisfying meal to bring you back to life. You go into a Chipotle in hopes of getting an equally delicious and fulfilling meal. Right away you see soft flour tortillas just waiting to be rolled into a burrito, rice piled high, five different proteins to choose from, four unique salsas, crispy romaine lettuce, mouthwatering guacamole, and so much more. As you sit down with your burrito your mouth begins to water with the thought of all the flavors you are about to experience. B. Relevance: Chipotle is a nationwide chain that many people easily recognize. It is a perfect place to dine in or get carry out because of its fast service and quality food. When dining in people enjoy the causal warm atmosphere that every Chipotle location has to offer. It is a perfect place for even the pickiest eater because each customer is able to personally customize their meal. The assembly style service quickly moves people along, and that is what customers like best. CEO Steve Ells was quoted by Fortune Magazine saying, “Chipotle succeeds not because of the burritos, it works because of our system”. Another reason customers keep coming back time after time is because of the quality food that Chipotle prides itself on serving. C. Credibility: Like most Americans, I try to get the most out of my...
Words: 1232 - Pages: 5
...Running head: IMPLEMENTING A LEADERSHIP CHANGE Assignment: Options for Implementing a Leadership Change YOUR NAME LDR/531 DATE NAME OF PROFESSOR Options for Implementing a Leadership Change Gene One is moving into the future by transitioning from a private company into an Initial Public Offering (IPO). Becoming an IPO means the executives who have investments in Gene One will give up their limited ownership and make the investments and ownership available to the public. (The IPO Process, 2009). Such a transition is bound to create conflict and disharmony, and executives at Gene One have mixed feelings about the change. (University of Phoenix (UOP), 2004). Chief Executive Officer (CEO) Don Ruiz, is initiating the change and is excited about the company being able to serve the public. Michelle Houghton, Gene One’s Chief Financial Officer (CFO), feels very emotionally protective of her ownership in the company because she invested everything she had into Gene One. Marketing officer Charles Jones has no personal investment in Gene One and believes in innovation and moving towards the future and is emotionally detached. Chief Technology Officer (CTO) Teri Roberson is emotionally attached to Gene One because she was part of the original start up group, but is passionate about her work. The opportunity to expand into breakthrough discoveries by becoming an IPO may allow her to overcome her fear of change. Greg Thoman, Chief Human Resources (HR) Officer...
Words: 1881 - Pages: 8
...Founder and CEO Richard Marin Scrushy………...………………. 5 a.) Trailer Park to Charismatic Leader……………………………………. 5-7 b.) Leadership Tactics……………………………………………………….. 7 2.) Corporate Culture at HealthSouth………………………………………………... 8 c.) Following Directions for Failure……………………………………........ 9 d.) Faking corporate profits………………………………………………… 10 C.) The Impact on Stakeholders…………………………………………………………….. 10 3.) Employees and Executives……………………………………………………... 10 e.) Many Lost Jobs as a result……………………………………………… 10 f.) Top Level Management Complacency.………………………………… 11 4.) Investors and HealthSouth Stock……………………………………………….. 11 5.) HealthSouth Patients and Customers….………………………………………... 11 D.) Outcome and Fairness of Punishment…………………………………………………... 12 6.) 2003 SEC Civil Law Suit against HealthSouth………………………………… 12 g.) Charges of Fraud………………………………………………………... 12 h.) Inflated Earnings on Financial Statements ...…………………………... 13 7.) Punishment: Does it fit the crime? ...................................................................... 13 i.) CEO Richard Marin Scrushy’s sentence...……..………………………. 14 j.) Other HealthSouth executives sentence ………………………......... 14-15 E.) Conclusion ………………………………………………………………………….. 15-16 INTRODUCTION There have been many examples of CEO’s misdeeds in recent history but the most interesting of them is former HealthSouth CEO Richard...
Words: 4087 - Pages: 17
...jets that serve over 240 cities with over 2,300 daily flights. Since it was incepted 25 years ago, the airline has grown to 32,000 employees. Though currently profitable, Classic has not gone unscathed by the challenges faced by the airline industry. Financially, increased uncertainty about flying has resulted in a 10% decrease in Classic’s stock prices. Operationally, the airline is suffering from waning consumer confidence. The airline’s rewards program has lost 19% of its members and the flights booked by the remaining members have decreased 21%. Rising costs, particularly in the area of fuel and labor, have limited the airlines ability to compete for the high value frequent flier. Classic’s board of directors has mandated a 15% cost reduction in all departments over the next 18 months to protect the profitability of the company (University of Phoenix, 2012, Classic Airlines Scenario). Financial success is dependent upon marketing. Without marketing to generate the demand for a product, the company cannot make a profit (Koller & Keller, 2006). Classic’s Chief Executive Officer (CEO), Amanda Miller, has tasked the new Chief Marketing Officer (CMO), Kevin Boyle and his team comprised of the Senior Vice President of Customer Service, Renee Epson and the Senior Vice President of Human Resources, John Hartman, with the challenge of reviving the rewards program, which she believes is the key to Classic’s success. The simplex problem-solving approach will be applied to identify...
Words: 4807 - Pages: 20
...Marketing Concepts Marketing MKT/571 Classic Airlines, an airline organization who faces competition is seen in its reduction of customers’ confidence resulting in lower sales. “Classic Airlines saw a decrease in their share prices and a decrease in the number of customers enrolled in their Classic Rewards Program” (University of Phoenix, 2012). The reward program is recording reduction in the number of members and the increase of fuel and labor costs is pushing the organization to the possibility of going bankrupt. Classic Airlines has had declining profits and their stock prices have fallen which has affected the organization. This has forced the company to restructure based on extreme competition and the declining metrics disclosed from their customer loyalty report. The paper is meant to identify the products or services and its challenges plus discussing the marketing concepts that the organization uses to guide its marketing efforts. Current Situation Classic Airlines is a company with an extensive history of success however, the company has encountered difficulties in their advancement toward an effective customer service and marketing campaign. Over the years the cost of fuel and labor has been increasing and the top executives at Classic Airlines have a hard time figuring out how to cut costs, so that they can afford increases. There is a need for the airline to keep up with providing the best services for customers but without...
Words: 3284 - Pages: 14
...trademarks of Thomson Reuters and its affiliated companies. APRIL 24, 2012 / 12:00PM, 2498.TW - Q1 2012 HTC Corp Earnings Conference Call CORPORATE PARTICIPANTS Peter Chou HTC Corp - CEO Chialin Chang HTC Corp - CFO Joey Cheng HTC Corp - Director, IR CONFERENCE CALL PARTICIPANTS Ben Lu Seligman - Analyst Will Power Robert Baird & Co - Analyst Richard Ko - Analyst Alban Cousin Arete Research - Analyst James Faucette Pacific Crest Securities - Analyst Dan McComb Viking Global Partners - Analyst PRESENTATION Operator Welcome, everyone, to HTC's 2012 Q1 results conference call and webcast in English. Today with us we have CEO, Mr. Peter Chou; CFO, Mr. Chialin Chang and IR Director, Mr. Joey Cheng. All lines have been placed on mute to prevent the background noise and after the presentation there will be a question and answer session. (Operator Instructions). For your information, this conference call is now being broadcasted live on the Internet. Webcast replay will be available within an hour after the conference is finished. Please visit www.htc.com under the Investor Relations section. Now I would like to introduce Mr. Peter Chou, the CEO. Mr. Chou, you may begin. Peter Chou - HTC Corp - CEO Hello, hi. Good morning, good afternoon, good evening, all of our friends, investors from the whole world. It's a pleasure to talk to you here today. And I would like to take this...
Words: 10943 - Pages: 44
