Accounting Procedures at Champion Marketing, Inc.

Accounting Procedures at Champion Marketing, Inc.

Letter of Transmittal

From,

PGPB5,

To,

The Professor of Written Analysis and Communication,

i

August 31,2016

Subject: Decision making report for the case ‘Accounting Procedures at Champion Marketing’

We are hereby submitting a decision making report on the case titled, ‘Accounting Procedures at Champion Marketing, Inc.’

This report covers Cathy Rodgers ethical struggle with her boss Mike McMann’s habit of passing off personal expenses on the company’s accounts.

It is recommended Cathy approach Cecil Osburn and cross check regarding the expenses incurred by Mike McMann without officially reporting it.

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Executive Summary

This report is based on the case ‘Accounting Procedures at Champion Marketing’ where Cathy Rodgers faces problems with her boss, who she believes is passing off personal transactions in the company’s expenses. Cathy has the option of ignoring the issue, approaching the President Cecil Osburn and involving the accounting review board of the company. Rodgers needs to balance several concerns and priorities, as this issue could have a long term impact on her career and the integrity of the company. After a thorough investigation of the case I would like to advise Cathy to take the issue to her Osburn in order to deal with it effectively.

Situation Analysis

Champion Marketing, a speciality marketing firm in the United States. They sold promotional items like calendars, coffee mugs and other items that could carry company logo and its details. Champion Marketing was one of the most profitable speciality marketing firms in the United States. With the consistent growth and increasing profitability Champion Marketing was looking for growth and expansion opportunities in the industry.

One of the expansion opportunities was acquiring Venture Sports Products. Venture Sports Products founded by Mike McMann was a financially successful operation for selling most of the giveaway items distributed to fans at various events across the United States. Venture Sports Products complements to the products of Champion Marketing, hence it is strategically beneficial for Champion Marketing to expand its business operations.

On acquiring Venture Sports Products, Mike McMann was appointed as Vice President of Champion Marketing heading the Venture Sports Division.

Cathy Rodgers was the accounting staff at Champions Marketing since 1999. She was assigned a new role as a Management Accountant for the new area and reported to Mike McMann. She was also promised a significant promotion in the coming years.

Cathy Rodgers while working became concerned about McMann’s honesty as she found some discrepancies while reviewing the expense report. She noticed that on multiple occasions McMann had charged his personal expenses to the company and also got Cecil Osburn, President of Champion Marketing to approve those expenses.