Name: Cattleya T.

Peñalosa
Subject: PA 205/211 Organization and Management

1. What are the facts of the case?

One of the staff of the company had mistakenly shipped 50,000 units of goods instead of 5,000
units for Super Private Limited. This leads to a discrepancy of 4.5 million dollars in the reported
sales figure covered by the 4th quarter of the financial year.

2. What are the issues?

Correcting the reported sales figure will decrease the amount of bonus the employees are
expecting and when David consulted Johnny, he was threatened to escalate the issue to the
CEO if David continuously insist to adjust the sales figure for December instead of January.

3. What are your recommendations to resolve the issue?

David should consult with the audit team regarding the problem and decide what actions he
should take. If the audit team suggests to adjust the sales for the correct period, then David
should do so as the finance director of the company.

4. Organization and Management

Honest business practices build foundation of trust within the company. They must resist the
short-term gratification at the expense of a long-term effect. If honesty and transparency
becomes the culture in the company, employees and the business itself will build a virtuous
reputation.