From the case, we found the composiition of audit committee has some problem. The audit committee members also are members of the Board of Directors, which should be separated from the company.
From the case, the employment of treasurer has huge potential danger for the compnay, because treasurer is a very important people who should have very high commitment to integrity and ethical values. The company should increase their human resource standards of employment.
From the case, we found that the management tries to threat the auditors to do some abnormal change. It is related to the management’s commitment to integrity and ethical values. We should remind the danger of management’s behaviors and ask them to be care of their integrity and ethical values.
From the case, the big problem is that the internal auditors aren’t working for the financial vice president. They should be independent. They should report directly to the audit committee of the board of dirctors.
From the case, the three brothers serve three important roles in the company. It is about management’s philosophy and operating style and has some hidden trouble. I think the company should decrease the influence by family members and increase the internal environment.
From the case, we know the management has a big mistake about evaluation. It is about human resource standard. The manangement should do some improvement of their evaluation system.
The management really influence the stockholder’s earning per share directly. Their behavior is really about their commitment to integrity and ethical values and phiolosophy and operating style. The management should present the reasons for their any behaviors and cannot do anything just for their own benefits.
From the case, we know that the content of written policies and proedures manual are not comprehensive. The company should increase the content of written policies and procedures .
Even though the company has well designed accounting systems and effective internal control procedures. You cannot ignore any possibility of hidden problems. You should keep your internal environment good.
The data security is a very important issue for a company. According to organization structure, different department has different authority,