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John Wayne Company is a major employer in the town in which you live. You have always had a high opinion of the company. The company has been a major donor to the schools and to other charities. In addition, many of your friends work for the company. John Wayne Company has asked you to become part of their accounting staff. You gladly accept!
On your first day of work, the head of the company informs the accounting staff that he is going to purchase another factory in town. The head of the company is buying the factory as a favor to his friends in the other town. The accounting staff starts to receive boxes of all the sales data from the other company to assess the price that will be offered to buy the company. As you start to go through everything, you notice that many of the sales documents are missing. there are so many of these instances that you start to question if this purchase is a good idea, and if the financial records are complete.
Write a business memo to the head of the company stating why his proposed actions of buying the company might not be a good idea based upon the review of the sales info. Expalin why this finding might bring into question the reliabilty and relevance of the company's financal records.
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