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 alf. 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 onservative 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 shareholders,because we don’t want our shareholders to run away. Question 2 What should Schein do about Patel’s claim that beatty has become hostile toward him? First of all. e need to really to confirm that has beatty hostile toward patel’s.
we need find a solution so that Patel’s and beatty can work together and have a good elationship. have to ask petel’s to address the issue directly with Beatty. it may be difficult but necessary. is to adequately communicate what the issue is and to give a very specific example. if the issue continues. Schein should help with the issue that partel’s had with beatty.
Schein need to have a meeting for both of them to discus fired beatty or let him stay in the company. Question 3 What right and protections do whistle-blowers have in the workplace today?You are protected under the law if you reveal to those in positions of authority, or ‘blow the histle on’ suspected malpractice at work. It is in the public interest that the law protects whistleblowers so that they can speak out if they find malpractice in an organisation. Blowing the whistle is more formally known as ‘making a disclosure in the public interest’ so it is important you can do so knowing that you are protected from losing your Job or being victimised as a result of what you have uncovered and made public.
safe. 4. RECOMMEDATlONS Mr.Schein have to meeting with new cfo who is mr beatty as a replacement for mr atel to change their approach towards the company profits and higher expecting sales in the coming year and explain the causes if not doing so. ln doing have meeting there will be change of tactics in expecting higher sales in new way. 5. CONCLUSlON Mr Beatty have a made decision in make their company to make more profit in conservative approach to stable the company in order to get expecting sales will increase CASE 13 NAME-NADZMI ZUHAIRI BIN HASIM -20110600464 NAME-SIVAGANESH AIL BALCHANDRAN ID-Ol-201205-00234 NAME-MUHAMMAD ARIEF BIN SHAHBANI ID-Ol-201207-00166