Christopher Manufacturing is a privately owned business located in the southwestern United States. The company was founded
Question:
For example, the company's accounting system has recently undergone a number of changes and is now functioning as a fully operational enterprise resource planning (ERP) system. Most employees interface with the system via a secure local network, but some employees do have access to the system through the Internet. Another significant issue relates to the absence of an ethics program. Gordon has never thought it necessary to implement such a program and has not even written a code of ethics for employees.
Required
A. Explain the relevance of internal control to Christopher’s plan to go public. Is internal control more important to a public company than to a private company?
B. Given the recent change to an ERP system, what additional issues must the company consider in developing internal controls?
C. Based on the very brief description above, what is your impression of Christopher’s likely approach to corporate governance? Explain your impression to the extent possible.
D. Why should the company establish a formal ethics program? What elements do you think would be most beneficial to a company such as Christopher?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Question Posted: