Case Study 1

1. What is the central problem of the case study?

 The central problem of the case study is there is a sales return arose due
to staff error. The Johnny (sales director) begs David (finance director) to
let it go because it was just a mistake and affect the bonuses.
2. Cite the issues that arise from the case study.
 The issues arise are whether to let it go which may affect the bonuses or
to be true and fair to the accounts even if it lowers the bonuses. David
could also be in trouble if Johnny gets the CEO to apply pressure to
David. David may consult an Audit Committee and there is a possibility
that David will resign since he associate himself on the unadjusted
financial statements which could contain misleading financial information.
3. How are you going to solve these problems if you were the finance director?
 If I were the finance director, I will still adjust the sales even if it lower my
bonus. Financial statements must be true and fair in order to avoid
misleading financial information to the public. If I will not fix these problem,
there us is a possibility that it will happen again and may become a
corporate culture which will create a serious problem to the company in
the future.
4. What lessons/values have you learned from the case study?
 The lessons/values I learned from the case study is you should double or
triple checking every statement to ensure that those are correct and avoid
problems which could result to a serious consequence. If problems come
up, always remember to true and fair to be reliable to all the people.