The company with which you are currently employed is
experiencing a financial crisis. The chief financial officer (CFO) has
suddenly resigned and no one is discussing the reasons. The U.S. Securities
and Exchange Commission (SEC) is investigating your company’s accounting
practices and, from the documents they have requested, the issue seems to
concern revenue recognition. Rumors are beginning to circulate that suggest
inappropriate behavior on the part of your company. The organization is a
publicly traded company and, as such, the company is required to issue a
public notice concerning the sudden vacancy of the CFO. As a certified public
accountant on the team drafting the notice, you are involved in communicating
the current situation to the general public.
a press release.
You may research to find examples of public notices. Use the examples to
determine how you will format your press release.
Write an accompanying
internal memo of no more than 2 pages in length to your manager. Complete the
following in your memo:
Outline what your company is legally required to do.
Explain the value of the public communication in this situation.
Examine the balance between calming external stakeholders and the ethical considerations of providing all the information that is required by the SEC.Explain how the perception of he press release will affect public opinion