case 13
CASE 13-BLOWING THE WHISTLE:ACCOUNTINGPRACTICES AT GLENFAIR ELECTRONICS
Background overview
Bob Schein, is a vice president of human resources at Glefair Electronics, as a listed company, Glenfair was required by the securities and exchange commission to issue public sales and profit forecasts Glenfair Electronics had over 10,000 employees and a reputation for producing high-quality electronic components used in a number of manufacturing applications.the company had begun to experience a slowdown in product demand. And their share price had declined as well in the last year and a half. Anwar patel joined Glenfair after completing his digree in accounting five years ago,for the past three years,partel had been preparing Glenfairs sales revenue reports.partel working under a new Chief Financial Officer (CFO).John Beatty.He joined Glenfair earlier in the year after not obtaining a promotion to CFO at his Previous company.John Beatty use a different and more aggressive accounting method for forecasting and calculating projected sales revenue for the coming year.But Patel feel that beatty had become hostile toward him.
Question 1
If you were Schein,what would you do,if anything?explain
I would first investigate the situation before taking any action.see how the company preformance. How the new accounting method implement to the company.how does it do to the company.does the product demand increase or still slowdown, how does the future sale performance will do. Because we don’t want to mislead shareholders about Glenfair’s future sales performance.Glenfair Electronics need a new idea for the company because the previous chief financial officer (CFO) had taken a rather conservative approach and did not stretch the boundaries of acceptable practices. that might be the issue of the company experience a slowdown in product demand. And their share price had declined as well in the last year and a half.we want the best for the company and the
Background overview
Bob Schein, is a vice president of human resources at Glefair Electronics, as a listed company, Glenfair was required by the securities and exchange commission to issue public sales and profit forecasts Glenfair Electronics had over 10,000 employees and a reputation for producing high-quality electronic components used in a number of manufacturing applications.the company had begun to experience a slowdown in product demand. And their share price had declined as well in the last year and a half. Anwar patel joined Glenfair after completing his digree in accounting five years ago,for the past three years,partel had been preparing Glenfairs sales revenue reports.partel working under a new Chief Financial Officer (CFO).John Beatty.He joined Glenfair earlier in the year after not obtaining a promotion to CFO at his Previous company.John Beatty use a different and more aggressive accounting method for forecasting and calculating projected sales revenue for the coming year.But Patel feel that beatty had become hostile toward him.
Question 1
If you were Schein,what would you do,if anything?explain
I would first investigate the situation before taking any action.see how the company preformance. How the new accounting method implement to the company.how does it do to the company.does the product demand increase or still slowdown, how does the future sale performance will do. Because we don’t want to mislead shareholders about Glenfair’s future sales performance.Glenfair Electronics need a new idea for the company because the previous chief financial officer (CFO) had taken a rather conservative approach and did not stretch the boundaries of acceptable practices. that might be the issue of the company experience a slowdown in product demand. And their share price had declined as well in the last year and a half.we want the best for the company and the