Frank and Ted should look into putting their departmental managers through a management training course of some kind. This would those with little experience the training and knowledge they need to perform well at their job. This would be expensive and time consuming, but would pay off greatly in the long run. Frank and Ted should also hire departmental accountants. It is a good idea to have each department keep track of their own financials, but the managers do not have the experience. Even Ted Richards said himself that the departmental managers llhad never seen receivables, and didn't know what they were,'I so having them handle the cash inow accounting could be a huge disaster. If they have an experienced accountant in each department doing the daily detailed report, instead of the managers, that would ensure that the financial reports are accurate, but this would be more costly to the company. Selected Solutions A combination of both, sending the mangers to some type of training and hiring extra accountants. Expected Results This solution should ensure that all the managers are well trained and can be expected to do their job correctly and effectively. Hiring extra accountants will take some of the financial responsibility away from the managers and give it to experienced accounting professionals which should cut down on the risk of material misstatement or fraud. Positive and Negative Results We can expect that the managers will perform better and gain more experience in their positions with the extra training. Also that the accounting system will be more efficient with the extra accountants because it is more liking the records and reports will be financially accurate