I’m studying and need help with a Accounting question to help me learn.
For this assignment, you must work in groups of 2 or 3. You may chose your groups, but all groups must have 2 or 3 members. Submissions by groups of less than 2 members or more than 3 members will not be graded and will receive no credit.
In the Fall of 2016, news of fraudulent customer accounts created at Wells Fargo was made public. Please do some Internet research about this scandal, then respond to the questions below. Here’s a link to an article to get you started. You should use at least 4 additional sources.
http://money.cnn.com/2016/09/08/investing/wells-fa… (Links to an external site.)Links to an external site. (Links to an external site.)
1) From the Prologue of our textbook, managerial accounting is used to plan and control. What do you think about the plan Wells Fargo executive management set for customer accounts? (Things to consider: what was the intent of the goal? intent good or bad? how was the target level of the goal set? is it reasonable? what goal would you set to increase your company’s profitability?)
2) How did Wells Fargo control after establishing a plan? (Things to consider: how were branches/employees held accountable or motivated? how was executive management held accountable for attaining the goal?)
3) So who’s fault is it? Who should be held responsible for the fraudulent account creation? Why? What consequences should they face?
4) It’s often difficult to get all the facts about a situation like this. What question(s) do you still have and why is that information important?