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Airtex Aviation

In: Business and Management

Submitted By marjoriemar
Words 577
Pages 3
Case 2: ATLANTIC HOME LOAN

Marjorie Marques

Management Control Systems
Mr. Stephen Del Vecchio
January 24, 2014

1. The devices (control) used by Al Fiorini before he went back to school were: * To find a person who should execute his work in the company Atlantic Home Loan (AHL). It is a personnel/cultural control in my opinion because Al decided to delegate his work to a person who had the same thoughts that labor matters. For this reason, Al chose Joe Anastasia because Joe was an employee of the AHL with a lot experience in financial matters. Therefore, Al decided to make a verbal agreement of partnership with Joe. However, Al realized just a few days before going to school in Los Angeles, to be chosen by Joe Anastasia for his partnership was a bad idea because Joe had an alcohol problem and it began to influence Joe’s attendance at work. * Al decided to choose an action control when he talked with Joe about this problem, and Al communicated his rules, policies, procedures and codes of conduct. However, this control had no results expected, and then Alex decided to break the verbal agreement of partnership with Joe. Therefore, Al paid money and broke the verbal agreement of partnership with Joe.
The devices (control) used by Al Fiorini after he went back to school were: * Al needed to choose another person in place of Joe. Al found a person named Wilbur Washington. I think it is a personnel/cultural control because, again, Al decided to delegate his work to a person who had the same thoughts that labor matters with less power than him. In this time, Wilbur did not have permission to handle banking accounts. * Other action that Al chose after he went back to school was to trust four signed checks to Letitia Johnson who was his worker in AHL. Letitia had demonstrated her loyalty to Al and the company. This action in my opinion is a personnel/cultural control because Al thought that Letitia has the same culture as him. 2. I think that Al used the right types of controls, but he fail to design or implement them properly because not only should Al have called Bank of America (BofA) to stop payments on the checks, but also Al should sent a letter to the bank stopping any movement that he does not make. Additionally, I think that Al did not use all possible controls. Al should not have trusted these signed checks to Letitia because he did not know her very well. I believe that Al should have found a trustworthy person, possibly a relative although he or she knew nothing of AHL, who could be authorized to sign on company bank accounts of the company together with Letitia. In this way, Al could have prevented Wilson making checks in his name or Letitia’s because Al’s relative would have known about fraudulent layout. 3. Al should sue to Wilson for fraudulent dealings of AHL accounts in the BofA, and a judgment for damages because Al wasted money and time in order to defend the two plaint for warrants for the arrest that Wilson opened against him. Also, Al should sue BofA as well, because he did not authorize the bank to allow Wilson to handle the AHL accounts. For this reason, BofA should not have allowed Wilson return the money from the payroll account to the general account and cash the checks.

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