Preview

Hibb’s Web

Good Essays
Open Document
Open Document
1391 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Hibb’s Web
Hibb’s Web

Overview The Uvex Corporation was a small family-owned medical center on the southwest coast and as the business becomes flourished, the company restructured the organization for better service for its patients. Since after reorganization, Alex Fuhrman was worked as head the administration of the cancer research and treatment division. Christopher Hibbs, previously worked as a bookkeeper for the city of Sacramento, and currently hired to be an accounting manager for the West Coast division. Frederick Fontaine, the Manager of West Coast, has found a memo on Hibbs’ desk about doubt Alex was the person who cause fund missing since Alex was the director of accounting and finance. The unavailable communication between Alex Fuhrman and Christopher Hibbs caused Alex commence a libel suit against Hibbs and the Corporation. Frederick needed to find a solution before nine o’clock the next morning.

Problems There are several problems that causing the “Hibb’s Web” case deterioration. First, there are conflicts between functional structure and divisional structure after reorganization. Christopher Hibbs has to compile monthly statements for each department whereas he was hired as an accounting manager for the West Coast division. Also, instead showing the financial reports to the Frederick, Hibbs sent it directly to the executive controller of Uvex.

Second, inattention and failure of management was another problem in this case. When Hibbs want to make numerous changes to the accounting system that Alex installed, Frederick was not convinced that Hibbs was adequately qualified to alter the process. As the time passed and the department heads appeared placated, Frederick forgot his worries. Second example is when Frederick found the memo on Hibbs’ desk, which was a week after Hibbs sent the memo to controller. The controller did not take any action or investigation. The controller expressed a belief that Hibbs can solve the problem before the fiscal

You May Also Find These Documents Helpful

  • Powerful Essays

    Karen Carlin Case Study

    • 1252 Words
    • 6 Pages

    The first issue within the schedule typist department of Hepplewhite & Boyce is a lack of productivity on the part of two of the employees, Pat and Pauline. In order to do the least amount of work possible, Pat and Pauline are purposely not updating the tax schedules sent to the department by the accountants. In turn, Pat and Pauline are pressuring both Myra and the new hire, Karen, to be unproductive as well. This is clearly happening for a few reasons:…

    • 1252 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    • Employees fail to accept responsibility in making a reasonable budget for there department in the company.…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Mary worked at Jubilee Medical Facility, a standalone hospital, which is part of a medical corporation affiliate, as a Clinical Director for over 16 years. Although the facility was the only type of its kind, it had the worst reputation. For a number of years, Jubilee operated with inexperienced, lethargic staff members who lacked the understanding of corporate structures. Mary was no different, although she was a licensed practitioner, who understood the logistics of her position; she too, like the others, lacked knowledge about systematic approaches within corporate structures. Mary, as accustomed as she was to her laidback atmosphere, never predicted that an economical downfall would threaten not only her job, but also her colleagues’ jobs. At the pinnacle of her career, and in one instant everything changed!…

    • 1409 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Personnel controls include: 1) Ted called up and dealt with suppliers by himself instead of letting Sarah Arthur manage this issue since she was not capable of doing the company’s best interests. He also established a better relationship with the bank by himself since no one in the company would get this job done; 2) Conducting a Daily Department Report to help improve departmental managers’ management skills; 3) Frank rehired the old salesmen and led them to finish the first aircraft sales; 4) Two departments, Fuel Department and Flight School, have significant accounts receivable. Ted…

    • 780 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Abstracts from Au-C §265

    • 423 Words
    • 2 Pages

    * in writing or orally, other deficiencies in internal control identified during the audit that have not been communicated to…

    • 423 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    As I have read the case, Robyn Gilcrist has to start work on May 4 under the direction and supervision of Olaf Gunerson, founder and former owner of Yellowtail, over the next 12 months. But due to the unexpected death of Mr. Gunerson, Robyn will be taking control of Company on April 14 instead of May 4 as was planned before. Due to this sudden change Ms. Robyn will face very tough challenges as a president of Yellowtail Marine, Inc. Robyn arrived to her first day of work at 8:15 a.m. and found an in-basket full of awaiting memos on Mr. Gunerson’s desk. The in-basket memos contained staffing issues, production problems, meetings, and important deadlines. Not only that, she also had to deal with what Gunerson had left, whatever had come up since, and the tasks he had given her. In addition, Mr. Boswell has asked her to meet a potential client in Miami, fly back to San Diego to attend Mr. Gunerson’s funeral, and provide him her…

    • 428 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    At fault for not employing proper controls to ensure that his departments trading activities and financial reporting were compliant and sustainable.…

    • 1587 Words
    • 7 Pages
    Good Essays
  • Better Essays

    The first day was just learning all the “Bearism’s rules”, then after two weeks, Jack got to attend a group training section at The Firm’s national training center. After Jack got back from the training, he is assigned to do audit for the Rineholt Corporation. Jerry Lisbon was the senior in charge of Cement. Jack and Jerry went to the plant to do some audit works. During the audit, Jack found out that there was a problem with the clerk who handled miscellaneous cash receipts because when Jack asked to count the petty cash, she pulled her check book and wrote a $150 check and told Jack to include that check in the petty cash fund also. The clerk has been taken out money from the petty cash fund when she needed and no one ever noticed. She asked Jack not to tell the manager because if they found out, she will be fired. Jack didn’t want to make anyone fired, but he decided that he needed to talk to Jerry about it and he did. Jack has made a good…

    • 1870 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Several examples in which there was “failure to govern” were surrounding the time when the federal exchange was preparing to launch. While interviewing several different individuals who were working on the launch of the federal exchange from the Department of Health and Human Services, CMS, and the White House, Brill notes that they all had different responses as to who was in charge. Moreover, there were several instances when new individuals stepped in to take charge, which resulted in miscommunication and errors that occurred down the line. Another example of “failure to govern” was within the Treasury Department. Despite having three years and three months since the law was signed, the Treasury Department was unable to complete the…

    • 392 Words
    • 2 Pages
    Good Essays
  • Good Essays

    STAKEHOLDER ANAYSIS MAP

    • 552 Words
    • 3 Pages

    The accountants are letting some of the donors take advantage of poor leadership because they don’t want to negatively impact the relationship with the donors…

    • 552 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Trolley Dodger

    • 418 Words
    • 2 Pages

    accounting employees, and the old truism that an internal control system is only as good as the…

    • 418 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Healthsouth Fraud

    • 3596 Words
    • 15 Pages

    Richard Scrushy founded HealthSouth, formerly known as Amcare, Inc., in 1984 in Alabama. HealthSouth is a provider of medical rehabilitation services, as well as outpatient surgery and occupational medical services. The company experienced rapid financial growth and numerous mergers and acquisitions in the mid-1990s, which continued to escalate until the fraudulent activity surfaced in 2002. It was at this time that the Enron and WorldCom scandals were discovered and the Sarbanes-Oxley Act was created. Pressure to meet Wall Street expectations pushed Scrushy and other senior management to “cook the books”. Income was artificially inflated, numbers were manipulated, and false accounts were created. Numerous red flags occurred but were not investigated such as: disproportionate analytical ratios, exponential earnings growth, letters of concern sent to the auditors, and consistently meeting market expectations. Collusion, lies, employee unawareness, disregard for red flags, and hiring CFO’s from the auditing firm helped ensure the fraud remained undetected. Auditors failed to follow their legal duties and lacked professional scepticism in the process. When the scheme began to unravel, HealthSouth was faced with a financial crisis. An investigation took place and PwC was hired for audit and reformation. Alvarez and Marsals, a restructuring firm, was crucial to HealthSouth’s continued existence. Charges were made, jobs were lost, and many legal battles arose from…

    • 3596 Words
    • 15 Pages
    Best Essays
  • Satisfactory Essays

    The president had seen the problem and addressed it. But the controller’s decision was unethical, because he took a bank loan out to put their company over the $1 million mark. If he had explained to the president, what he had done, the president might have not with this decision.…

    • 280 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Dena Brenner Case Summary

    • 882 Words
    • 4 Pages

    In this case, the only element that we could apply is the opportunity. Ms. Brenner, with her payroll manager position had access to the payroll system, and performs the corresponding changes to commit fraud. In addition, it was also the person in charge of the reconciliation of payroll account. I think that this fraud does not seem to be caused by financial pressures, but whether by the lack of internal control, which was a key factor to commit fraud by part of Mrs. Brenner.…

    • 882 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Lack of strong internal accounting controls that enabled the falsification of accounts and fraudulent financial reporting…

    • 251 Words
    • 1 Page
    Satisfactory Essays