You are a new manager to a company in the automotive industry. You are asked to...

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Accounting

You are a new manager to a company in the automotive industry.You are asked to review the monthly management reports that arepresented to the owner each month. The previous manager, who hadbeen employed for many years before retiring, usually just approvedthe reports and returned them immediately. The controller isgetting anxious that you are taking so long to review them. Younoticed, however, that the reports, which consist of a HorizontalAnalysis, Vertical Analysis and Ratio Analysis, do not seem to addup. There is a discrepancy that is causing you to worry that thereports are being purposely modified and the controllers repeatedphone calls make you think that he/she is covering something up.You are on good terms with the owner so far and are scheduled tohave a meeting with him during your 2nd week at work. What steps doyou think you should take? Would it be appropriate to mention yourconcerns during the meeting? Should you speak directly with thecontroller? Provide examples of how you might handle the situationat hand.

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3.9 Ratings (466 Votes)

As in per my opinion speaking directly with customer may loose him at all sinve he would find hiself betrayed or unethical that his work is not being done properly all that ratios shows the financial position See Answer

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Transcribed Image Text

You are a new manager to a company in the automotive industry.You are asked to review the monthly management reports that arepresented to the owner each month. The previous manager, who hadbeen employed for many years before retiring, usually just approvedthe reports and returned them immediately. The controller isgetting anxious that you are taking so long to review them. Younoticed, however, that the reports, which consist of a HorizontalAnalysis, Vertical Analysis and Ratio Analysis, do not seem to addup. There is a discrepancy that is causing you to worry that thereports are being purposely modified and the controllers repeatedphone calls make you think that he/she is covering something up.You are on good terms with the owner so far and are scheduled tohave a meeting with him during your 2nd week at work. What steps doyou think you should take? Would it be appropriate to mention yourconcerns during the meeting? Should you speak directly with thecontroller? Provide examples of how you might handle the situationat hand.