Preview

Atlanta Home Case

Satisfactory Essays
Open Document
Open Document
690 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Atlanta Home Case
Case1 Atlanta Home Loan 1. Identify the devices (controls) that Al Fiorini used to control his business, both before and after he went back to school. Classify each control as a results, action, or personnel/cultural type of control. Controls used Pre-MBA enrollment Al received all the leads generated by the telemarketers and then distributed them to each of the four loan officers- this is an action control more specifically an Behavioral constraint that limited their administrative access to the leads. Al also had a separation of duties in between loan officers, loan processors, and the telemarketers. This is another form of action control. Al also monitored/ tracked the credit inquiry activities of his loan officers. And the ratio of loan application per lead- Action control Al also allowed his employees to telecommute- Cultural control job designed to make the employees jobs easier. Al provided his employees with a commission structure that allowed them to receive 40 of the revenues closed from the leads provided and 60 for those generated themselves.- Result control Al hired experienced loan officers- Personnel control For funding AHL received their funds directly from the proceeds and the brokers checks were mailed overnight.- Action control Controls used During the MBA enrollment Al continued to monitor the activities of his employees and the overhead expenses made by Wilbur- Action control. Al was on the phone 3-4 hrs per day talking with his employees- Action control Al had AHL corporate mail forwarded to his home in California.- Action Control Al would make commission payment to Wilbur at 100 on all loans closed less licensing fee or 10 of all revenue.- Results control for 1 employee. 3. What should Al do now Why Al should completely close the business until hes done with school, because he has lost complete control of the day-to-day ops of the company. This will ensure that employees understand whos in charge of the company. Al should regain control

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Smackey

    • 395 Words
    • 2 Pages

    Describe Keller CPAs’ responsibilities related to communications regarding internal control matters. What internal controls issues do you identify?…

    • 395 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Correct! The correct answer is: B. Because all managers have employees, control criteria such as employee satisfaction, turnover, or absenteeism can be used in most situations. 3.In reviewing the result of the control process, managers could choose to avoid taking action when ________.…

    • 1548 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Complete Problems 8-1A, 8-3A, and 8-4A (including the Analysis Component) on pp. 338-339. When responding to the cases in 8-1A, be sure to think critically about each case. Identify the principles of internal control that has been violated, and give an explanation of why you think that principle has been violated. Identify the consequences of the actions described in the cases. Make a recommendation for what the business should do to ensure adherence to principles of internal control.…

    • 149 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Riordan Strategic Plan

    • 731 Words
    • 3 Pages

    Mississippi State University. (2010). Office of Internal Audit. Retrieved October 7, 2011 from http://www.msstate.edu /dept/audit/ BasicControlAssessment.htm…

    • 731 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Case

    • 397 Words
    • 2 Pages

    Managers are most likely to step across ethical and legal boundaries when the pressure to perform is great. Pressure can be healthy but companies that set high-performance targets and grant large rewards for achieving these must have strong control systems to ensure that people are not tempted to cross boundaries. What are the four important control systems? Please identify each control by name.…

    • 397 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Proper management control need to be in place in an organization to govern the level of…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    What are the different types of control systems? What are some advantages and disadvantages of the various control mechanisms? How does your organization use the steps of the control process?…

    • 543 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Assignment 8.1 Handout 1. Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate accounting records. Requirements R1. Which objective is most important? R2. Which must the internal controls accomplish for the business to survive? Give your reason. 2. The Sarbanes-Oxley Act affects public companies. Requirement R1. How does the Sarbanes-Oxley Act relate to internal controls? Be specific. 3. Separation of duties is a key internal control. Requirement R1. Explain in your own words why separation of duties is often described as the cornerstone of internal control for safeguarding assets. Describe what can happen if the same person has custody of an…

    • 854 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    o Identify some of the key control mechanisms, and describe how management can apply them to aid in achieving organizational goals.…

    • 222 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Internal controls are an essential asset to any company that wishes to maintain their company’s security and accuracy. These controls help to protect the assets belonging to a company from unforeseen events such as employee theft, robbery, or any sort of unauthorized use (Weygandt, Kimmel, & Kieso, 2008). They also create the opportunity for accounting records to be more accurate and reliable by limiting the possibility for errors and irregularities (Weygandt, Kimmel, & Kieso, 2008). An independent internal verification that is provided via internal controls maximizes the benefits of this system (Weygandt, Kimmel, & Kieso, 2008). There should be physical, mechanical, and electronic controls so that when jobs are segregated, there are more than one opportunities for a final verification of accuracy (Weygandt, Kimmel, & Kieso, 2008).…

    • 799 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Little Rock Nine Case

    • 633 Words
    • 3 Pages

    First, their childhood was very segregated they were only aloud to go to certain bathrooms. It was terrible they couldn’t get an education because the color of their skin. And if they did get and education it was nothing compared to the whites’ education. Which was not right, they had to go to different schools, they lived in two different parts of town, it was just a terrible time. It was very segregated, until the Little Rock Nine decide they would step up and stand for what is right, desegregating schools.…

    • 633 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).…

    • 2215 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Economic Paper

    • 727 Words
    • 3 Pages

    Controlling is another element for the financial manager’s job which consists of maintaining each area of the organization while implementing that they take action to show that results equal intent. Controlling is put in…

    • 727 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Case Study

    • 880 Words
    • 4 Pages

    2. What are the most important elements of Lincoln’s overall approach to organization and control that help explain why this company is so successful? How well do Lincoln’s organization and control mechanisms fit the company’s strategic requirements?…

    • 880 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Atlanta Home Loan

    • 1755 Words
    • 9 Pages

    2. What went wrong? Did Al use the wrong types of controls? Did he use the right types of…

    • 1755 Words
    • 9 Pages
    Powerful Essays