Question

In: Finance

A financial service company is aware that customers are being charged fees for receiving financial advice...

A financial service company is aware that customers are being charged fees for receiving financial advice that will not be given. This is in breach of the company’s own code of conduct and consumer law. Senior management delay remediation in an effort to meet their own sales targets. Complaints by customers and whistleblowers are ignored at all levels in the company.

In your own words, critique the following statement by the CEO:

“ ... this is our normal business practice, everyone else in the industry is doing the same, and our company has a policy of being socially responsible at all times. Our risk culture is exemplary and supports our growth strategy.”

Answer ALL of the following questions in your own words:

  1. Explain whether this company, in your opinion, has a sound risk culture.
  2. Describe what consequences could arise for this company from its compliance failure.
  3. Discuss what actions management could take in order to improve compliance risk.

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

X Company is a service company and prepares monthly financial statements. In April, it billed customers...
X Company is a service company and prepares monthly financial statements. In April, it billed customers $400,000 for services it provided; in May, it billed customers $369,000 for services it provided. In May, the company received $282,000 from its April customers and $254,000 from its May customers. Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows? - Income Statement, $536,000; Statement of Cash Flows, $769,000 - both statements, $254,000 - Income...
X Company is a service company and prepares monthly financial statements. In April, it billed customers...
X Company is a service company and prepares monthly financial statements. In April, it billed customers $418,000 for services it provided; in May, it billed customers $353,000 for services it provided. In May, the company received $282,000 from its April customers and $241,000 from its May customers. Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows? both statements, $353,000 Income Statement, $353,000; Statement of Cash Flows, $523,000 Income Statement, $523,000; Statement...
In 2011, Netflix customers’ service fees increased by 60%. Netflix discontinued a subscription offering DVD rentals...
In 2011, Netflix customers’ service fees increased by 60%. Netflix discontinued a subscription offering DVD rentals and unlimited video streaming for $9.99 per month; DVDs and streaming would be separated, with each costing subscribers $7.99 a month ($15.98 for both). This strategic decision occurred as video streamed via the Internet was slowly replacing discs. However, now customers wanting both services had to juggle two accounts, and Netflix lost around 800,000 subscribers. Assume that you are director of product pricing at...
Professional Fees Earned Budget for a Service Company Roberts and Chou, CPAs, offer three types of...
Professional Fees Earned Budget for a Service Company Roberts and Chou, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2016: Billable Hours Audit Department: Staff 36,200 Partners 5,400 Tax Department: Staff 26,400 Partners 3,300 Small Business Accounting Department: Staff 5,100 Partners 700 The average billing rate for staff is $150 per hour, and the average...
Alan, who is the Chief Financial Officer of SNL, has become aware that the company is...
Alan, who is the Chief Financial Officer of SNL, has become aware that the company is seeking to tender for some major renovation work needed by the company. Alan’s cousin is in the renovation business so Alan tells him of the possibility of work at SNL. Alan tells his cousin the price range that SNL will consider and something about other companies that are tendering. Alan attends the meeting where they consider who will get the tender for the repair...
Know Thy Customer (KTC) is a financial consulting company that provides personalized financial advice to its...
Know Thy Customer (KTC) is a financial consulting company that provides personalized financial advice to its clients. As a basis for developing this tailored advising, KTC would like to segment its customers into several representative groups based on key characteristics. Peyton Avery, the director of KTC’s fledging analytics division, plans to establish the set of representative customer profiles based on 600 customer records in the file KnowThyCustomer. Each customer record contains data on age, gender, annual income, marital status, number...
Know Thy Customer (KTC) is a financial consulting company that provides personalized financial advice to its...
Know Thy Customer (KTC) is a financial consulting company that provides personalized financial advice to its clients. As a basis for developing this tailored advising, KTC would like to segment its customers into several representative groups based on key characteristics. Peyton Avery, the director of KTC’s fledging analytics division, plans to establish the set of representative customer profiles based on 600 customer records in the file KnowThyCustomer. Each customer record contains data on age, gender, annual income, marital status, number...
Know Thy Customer (KTC) is a financial consulting company that provides personalized financial advice to its...
Know Thy Customer (KTC) is a financial consulting company that provides personalized financial advice to its clients. As a basis for developing this tailored advising, KTC would like to segment its customers into several representative groups based on key characteristics. Peyton Avery, the director of KTC’s fledging analytics division, plans to establish the set of representative customer profiles based on 600 customer records in the file KnowThyCustomer. Each customer record contains data on age, gender, annual income, marital status, number...
Corbin Company was charged​ $25 for a check printing service fee associated with its checking account....
Corbin Company was charged​ $25 for a check printing service fee associated with its checking account. Which journal entry is​ required? A.Debit Miscellaneous Expense for​ $25 and credit Accounts Payable for​ $25. B.Debit Miscellaneous Expense for​ $25 and credit Accounts Receivable for​ $25. C.Debit Miscellaneous Expense for​ $25 and credit Cash for​ $25. D.No journal entry is required.
X Company is a service company and prepares monthly financial statements.
X Company is a service company and prepares monthly financial statements. In April, it billed customers $405,000 for services it provided; in May, it billed customers $369,000 for services it provided.In May, the company received $281,000 from its April customers and $273,000 from its May customers.Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows?a. both statements, $369,000b. Income Statement, $369,000; Statement of Cash Flows, $554,000c. Income Statement, $554,000; Statement of Cash...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT