Case 1 Assignment: You are controller of Finn Manufacturing Company


You are controller of Finn Manufacturing Company and have been advised by a colleague that the sales director is unlawfully declaring fuel benefits in order to save substantial taxes. This has been creating higher profit margins and if declared those margins will go down. There is potential that this could push the company into insolvency, which would result in job losses for 300 employees. You have made the other directorsaware of the situation but they have expressed a wish not to disclose the misleading tax bill. You are aware that by declaring this information to the tax authorities, as required by law, that the organization may have to declare insolvency and those 300 employees could lose their jobs.

The Board of Directors has asked that you write a memo covering the details of the issue and providing a recommendation for going forward.

Organize your thoughts by considering: 1) introducing the issue; 2) the facts; 3) recommendations and 4) closing comments. (Do not assume that there is only one way to deal with this issue.)

The memo should be in good format for a professional memo and have citations for any source used.

1 Page