Question
Brannigan, Inc. and Chester Corporation are forming a jointly owned company to operate specialty chemical businesses now owned separately by Brannigan and Chester. The business
Brannigan, Inc. and Chester Corporation are forming a jointly owned company to operate specialty chemical businesses now owned separately by Brannigan and Chester. The business proposition is to find operating efficiencies and to reduce costs by pooling together those operations into a single company. Brannigan and Chester will each own 50% of the stock of the newly formed company. The new company will employ over 1,000 employees, have assets with a fair value of $5 billion, and will operate independently of Brannigan and Chester to the greatest extent possible. Ray Ponder will serve as the CEO of the new company. His vision is that the company must have a good system of internal controls, high ethical standards, and must treat its employees with dignity and respect. Because of your knowledge of fraud detection and prevention, you are a member of a task force assembled by Ray to further his vision for the company. What suggestions will you make to the team to prevent fraud from occurring at the company? Be specific with your suggestions.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started