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Go New or Continue
Group 7
Lopez, Elric Shan
Madi, Jady
Manzano, Kasteen Kyla
Olegario, Ethel Rose
SUMMARY
A consultant was hired to review the
financial control system of a company. Upon
reviewing it, the consultant found out that the
system is already out-dated and the results to be
reported were not that impressive for the
stockholders.
The consultant would like to suggest some
revisions on the system but the current president
designed it and his image was in sake.
ASSUMPTIONS
1. The system is not applicable to their new
policy and the data gathered are no longer
timely and relevant to the company which
results to many dissident stockholders.
• Basic Principles
- Integrity and Objectivity
- Independence
CON
The clients financial control system remains
antiquated which results to probable withdrawal
of the shareholders.
PROS AND CONS
2. Make a full disclosure of the matter to the
President privately.
PRO
If the president understands the situation, he will
agree to go forward and improve the company’s
financial control system.
CON
The clients financial control system remains
antiquated which results to probable withdrawal
of the shareholders.
PROS AND CONS
3. Inform the Board of Directors about the
problem.
PRO
The company will have knowledge about out-
dated financial control system and may take
action to prevent dissenting stockholder.
CON
It is unwise because the consultant didn’t follow
the process of reporting the problem concerning
the delegation of position in the company.
BEST COURSE OF ACTION
Make a full disclosure of the matter to the
president privately. This is the honest and
ethical solution as such matter concerns the
company internally. Additionally, this may help
to prevent dissenting stockholders and the
president may agree to move forward.