This case presents the actual family-business dilemma and identities have been changed to protect family privacy. The author’s opinions do not necessarily reflect the views of the Malaysian Institute of Accountants and this case was written for academic purpose only and the author disclaims any legal responsibilities.
This report will be discussed more details about the issues that arise in the company. Those issues are about the leadership, management and also accounting of the company.
1. What is the issue arise in the case of Delima? Identify the issue and make some recommendation.
|ISSUES |RECOMMENDATION | | | | |MANAGEMENT PLANNING | | | | | |Employment of staff | | | | | |The directors of the company, En. Zayed and Pn. Hashimah |The directors should employed qualified person to hold any | |employed a staff that has lower educational background who is |position even though they hired their family members to manage | |En. Salam and Pn. Balqis. Both of them only have secondary |the company. | |school background likewise En. Zayed and Pn. Hashimah. | | | |The directors also can make an interview before employed staff | |The directors also employed staffs who have no experience in |to manage the company in order to know their educational | |working. Cik Amy is young accounting graduate was employed to |background and working experience. | |manage financial of the company. | | | |Besides, the directors can hire temporary consultant to advise | |Improper organization chart |Cik Amy in perform her duties. | | | | |The organisational chart was improperly drawn and too few | | |positions had been added to the chart. The chart does not | | |include distinct departments to show the organisation by |It should be properly drawn with distinct functional departments| |departmental functions. |to show distinct job description for each department and several| | |important positions should be added to ensure effective and | | |efficient control. | | | | |ACCOUNTING PROBLEM | | |...