Some financial reporting are used in Wells Fargo for removing the misuse of assets and how it is used such as
Master Budgeting Report: Budget pricing is future financial cost and profit planning. For a sample product, based on market and previous financial data analysis a forecasting is done. In this forecasting a estimated future cost, profit and quantity is calculated. It is a future plan of a business which will help to direct activity and making necessary decision. This budget is totally calculated based on present data.
Job Order costing report: For different types of products different headlines are used in this method. This is for easily identifying difference transaction and need. It helps to giving importance on most demandable
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The seller will get money from the buyer or receiver who can be organization, person or government. This amounted money is called account receivable. So it is very necessary for keeping Receivable transaction on record very carefully. Small/medium businesses face some problem for cash based account. This A/R reports will help to recover those problem. Account receivables are used as a replacement of cash as the liquid asset of a business.
Cash flow report: Cash flow is money actually received and gone. The amount is coming by selling product, service, and asset or from other sources is known as cash inflows. Cash spend by purchase or other way is recorded as cash outflow. Cash inflows always remain higher than cash outflows though there might be high amount of account payable .spent might be higher than income.
Inventory and manufacturing reports: This report is for efficient production. Optimizing inventory and manufacturing cost help a business gain max output from minimum input. For this A-Z report of inventory and manufacturing report is needed. It will help manager to make decision for budget. This report is also important to all employees who are related with activity for
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• Prospects: Wells Fargo settings provide prospects for organization or staffs to commit deception.
• Attitudes/ Justification: An outlook, appeal, or set of principled values materialises that allows controlling or staffs to commit an untruthful act, or they are in an setting that levies satisfactory weight that reasons them to justify obligating a deceitful act.
The brought discussions about these triangles such as
1- Incentives/ Pressures: A corporate inducement for Wells Fargo to operate financial announcement is a failure in the company's financial projections. Company may also manipulate remunerations to meet forecasters' predictions or point of reference such as previous year incomes, to meet liability agreement limits, to attain an extra target based on incomes, or to exaggeratedly blow up stock values. As for misuse of assets in Wells Fargo, financial pressures are a collective inducement for staffs. Staffs with extreme financial responsibilities, or those with prescription abuse or betting problems may bargain to meet their individual
Employees were using the cross-selling which is a concept of attempting to sell multiple products to consumers. This concept led to fraudulent actions, in fact employees were encouraged to order credit cards for pre-approved customers without their consent, and to use their own contact information when filling out requests to prevent customers from discovering the fraud. " The Wells Fargo scandal was far different. Instead of a select few doing bad things, the unethical behavior was widespread at the bank, with thousands of employees engaged in secretly creating new bank and credit-card accounts for customers without their knowledge, resulting in overdraft and other fees." (Kouchaki, 2016). According to the Los Angeles City Attorney, employees were opening and funding accounts without customers' permission or knowledge in order to "satisfy sales goals and earn financial rewards under the bank's incentive-compensation program." This means that the board members of the bank were aware of that it wasn't by the employees' own wills. In fact, they were pressured by aggressive goals and performance which led them to immoral behaviors. Facing this problem, Wells Fargo bank had to take some measures to avoid bankruptcy, losing customers, or loosing brand
From big financial and ethical scandals like Enron to WorldCom, Wells Fargo may be the next big financial and ethical scandal. Wells Fargo is one of the leading banks and credit lending companies in America. Now, they’re on a slippery slope downhill to one of the worst—and most unethical—banking and credit lending companies in America, maybe even in the world. Wells Fargo has been in an ethical uproar, has questionable ethical values, and questionable principles and practices in culture due to their downhill ethical standards. The company may have been influenced by bad stakeholder judgment, and are now struggling to maintain the company’s culture.
They violated the trust of its customers and deceived and abused them. The bank and its affected personnel are paying and will continue to pay, the legal price for such flagrant wrongdoing, including perhaps, imprisonment of certain personnel (Cavico Mujtaba 17). According to Frank J. Cavico and Bahaudin G. Mujtaba, the authors of “Wells Fargo’s Fake Accounts Scandal and its Legal and Ethical Implications for Management,” the lesson to be learned from this scandal is “that if an organization sets unrealistic sales goals and then ties the employees’ compensation and their jobs to meeting these goals, then unethical and illegal behavior is likely to occur, harming the organization and its stakeholders” (Cavico Mujtaba
The steps to generate the production report is to 1) summarize physical units, 2) summarize costs, 3) calculation of cost per equivalent unit, and 4) assign costs to units transferred out and unit in ending WIP inventory (Heisinger & Hoyle, 2012, page. 202). Reference: 1) Heisinger, K., & Hoyle, J. B.(2012). Accounting for Managers. Creative Commons by-nc-sa 3.0.
Company Culture Scandal Wells Fargo has been a trusted bank by many Americans across the country, but the recent scandal has caused many to question the company’s ethics and culture. In recent weeks, there has been an abundance of time spent questioning Wells Fargo for illegal activity within the bank. The chief executive of the company John G. Stumpf did not believe the company was to blame, but that the employees were responsible for the scandal (Cowley 1).
During the past year Wells Fargo, a well-recognized bank of the United States, has been trying to clean its name and the mess it got itself into, when it was brought to the public that the bank was involved in generating fraudulent checking and savings accounts for its clients without their knowledge or their authorization. “The way it worked was that employees moved funds from customers' existing accounts into newly-created ones without their knowledge or consent”
It is represent funds which be occupied by the buyer when in the sales process with the companies, and the enterprises should collect receivables in time to compensate the cost in the production and operation process, and ensure the organizations can work properly.
Wells Fargo case should be analyzed very carefully because instead of having a few individual’s misbehaviors, we have a companywide unethical behavior. We can even say that this unethical behavior became a culture within the company. 5300 employees were fired due to the fake account scandal, former CEO John Stumpf lost his job as well. According to the recent news, created fake accounts were around 3.5 million for the last 15 years.
Wells Fargo surfaced in 2013, and it was confirmed Wells Fargo employees were under the gun to make impossible sales quotas to cross sell other bank products to existing bank customers. Wells Fargo violated bank policy, corporate and personal ethics and the law by opening accounts in existing customer’s names including funding these accounts with yet other customer’s money. Wells Fargo is not just a case of unethical behavior, but a dishonorable culture from the senior management all the way down to the lowermost employee. The scandal of Wells Fargo culture has so far concentrated on the high-pressure sales environment that drove employees to generate as many as two million false accounts.
The accounts receivable is one of the most confusing numbers on the balance sheet to understand. It is income that is due to the company, but has not yet been paid. So while the goods or services have been given out already, the money has not yet been received. This is problematic because it decreases the inventory while increasing the expense of trying to get back the money that is owed for the products. Because of this, it is important for companies to track how well they are able to receive their payments for debts owed by their customers.
Harvey Hegarty and Henry P Sims, Jr., there are many different factors that increase the likelihood of a manager taking unethical decisions. For instance, the article mentions that unethical decisions or actions are more likely to occur when they are rewarded. Rewards such as bonuses and promotions may be factors that could induce a manager to act unethically. Also, punishments could also be another aspect that could potentially encourage a manager to manipulate data. Manipulation of data may allow managers to avoid punishments along with negative consequences. Moreover, the article mentions pressure as another possible motivator which could trigger unethical behavior from managers. In situations where the manager is under pressure to meet a sales target, the manager may decide to unethically alter reports in order to meet the expected goal. As a result of these types of unethical behaviors, organizations may be affected from the inaccurate input received from middle level managers. Inaccurate information may create miscommunication, conflicts, and misguided data
Of greater importance, job-order costing system needs to accumulate three types of information which include direct materials, direct labor, and overhead. These factors are highly important essentially because of the significant variations in the products produced. Hence, each product or batch has a job identification number and costs are accumulated by a job number. All the more, job-order costing systems requires detailed accounting information and thus the total cost of all jobs is accumulated in one work-in process inventory control account; details of the cost materials, labor, and overhead for each job are kept in subsidiary records called job-order cost sheets (Edmonds, Tsay, & Olds,
Recently, three individuals were awarded $170 million for helping investigators gather a record $16.65 billion penalty against Bank of America. Based on their action of inflating the value of mortgage properties and selling defective loans to investors. By influencing the market falsely is unethical and wrong. That is also why their punishment was so harsh. Firms today warn their managers and employees that failing to report unethical behavior and violations by others, could get them fired.
The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics.
Fargo chose to establish a monetary administrations organization that we know today to be Wells Fargo (Wells Fargo, 2017). Before establishing the organization, Mr. Wells and Mr. Fargo chose to ground their organization in five standards which turned into their five essential esteems. Their first esteem being "individuals as an aggressive esteem" which implies an association with a colleague will prompt a superior association with the clients. Second "morals" Wells Fargo prides its self on being a straightforward organization and having nothing to cover up. Third, "what's ideal for the clients" as indicated by the Wells Fargo Website this esteem is characterized as ensuring clients' private data (Wells Fargo, 2017). The fourth esteem is "assorted variety and incorporation" which implies Wells Fargo advances the enhancement of its organization and customers while including pioneers all through the organization to decide. The last guideline is "administration" which implies learning and serving their