Managerial Controls

First, think of an incident of business fraud or scandal in the news, or choose one that has been mentioned in your reading.  Research the scandal, paying close attention to how it was possible for whatever went wrong to happen.

In your post, specify the scandal you chose, and you MUST include in your post citations to the sources where you have conducted your research.

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Then respond to ALL of the following questions in your initial post:

1. Were there controls in place that should have prevented the scandal or fraud from happening? Cite from this week’s reading materials those used as well as those not.

2. Explain what types of controls existed using the terminology in your reading (feedback, proactive, concurrent, strategic, operational, tactical, top-down, objective, normative, financial, nonfinancial), and how they were used.

3. Why do you think the controls you selected as ineffective, were ineffective?

4. Why do you think the business didn’t have sufficient controls in place?

5. What was management’s role in the failure of the controls?

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