Question

Assuming you have been working with one of the Big4 as auditor for more than 7 years, Mr. Alex Chan is your close friend and he is the son of Mr. Derek Chan, the founder of Apple Ltd., a listed company with very successful track record. Derek and Alex are the chairman and vice chairman of the company respectively. As you are familiar with Alex and his family, you learn that most of the senior management are from the same family of the founder, the financial controller, is in charge of finance department with the assistance of his sister Miss Candy Lee, who was decided to immigrate to England next month. Mr. Alex Chan would like to invite you to replace her as an assistant financial controller helping his brother-in-law, Mr. Peter Lee. Will you accept the offer and justify your answer? (Hint: Identify FOUR features of a family controlled company which affect your decision)

Answer 1

No, I will not accept the offer of Mr. Alex because of following causes-

1. As given in the case that the business is being operated as a family business in which important managerial posts are held by family members so outsider like me will not be as comfortable as they are.

2. I will not be able to show commitment towards the business as family members are showing due to close relation under the same family.

3. As we know that financial matters are the most important mmatters in a business which require flexibility also that can be shown perfectly by family members especially when all managerial decisions are taken by family members.

4. As I have been Auditor in the the same company so it is not feasible to me work under those people to whom I have given some negative and remediations in my audit report.

5. A business owned by family members is usually cost effective in the matter of remuneration because family members are not very rigid in the matter of fair and regularized way of remuneration.

Thanks & all the best......