What does it all mean?
When reading the case study, the red flags are quite apparent and obvious as it relates to the financial operations as well as the lack of ethics. The first red flag that is apparent is the lack of internal controls or separation of responsibilities.
The CEO and CFO of Vanderville Plastics Company (VPC) essentially make all the decisions from audits to bonus appraisals/payouts as well as decreases in liabilities which is specifically called out in the end of the study (Lapointe-Antunes & McPhee, 2018).
The second red flag that something is wrong was the resignation of the CFO once a consultant/third party auditor came in to review the financial statements and issues that started raising questions. The third red flag to me is that there was no sense of policy or process set in place for the various financial operations.
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https://www.solvedcollegepapers.com/product/mba-521-mba521-mba-521-b65
