Tommy Hubbs Is the New Controller of XYZ Corporation

question 19

Essay

Tommy Hubbs is the new controller of XYZ Corporation. Recently, Hubbs was approached by Carol Franks, the CFO, and told in no uncertain terms to record $100,000 in revenue at the end of 2015 even though the sale was not made until January 3, 2016. Hubbs contacts a good friend who used to be the controller of XYZ and is told the environment of the company is one of loyalty at all costs. His friend shares that he left the company because of differences on numerous accounting issues. The friend advises Hubbs to let it go this one time to show he is a team player.
Assume Hubbs decides not to go along with Franks' dictum. Prepare an outline to help him give voice to his values and attempt to change hearts and minds of those in XYZ that might block proper accounting.
Use the following to guide students on what is expected of them in answering this question.
As you read the case, think about the following series of questions for the protagonist to address after identifying the right thing to do including:
• How can they get it done effectively and efficiently?
• What do they need to say, to whom, and in what sequence?
• What will the objections or push-back be and, then?
• What would they say next? What data and examples do they need?

Recognize the legal processes and protections related to wrongful discharge cases.

Comprehend the historical context and importance of government regulation of securities to prevent fraud.

Identify fraudulent stock market practices, specifically "pumping and dumping."

Understand the scope and application of SEC regulations to online advertising and transactions.

---

Definitions:

Odour

A distinctive smell, especially an unpleasant one, perceived by the olfactory nerve system.

Sensory Adaptation

The procedure through which receptors sensing the environment become less alert to unchanged stimuli through time.

Sensory Sensitization

An increased response to a stimulus following repeated exposure to it.

Pain Pathway

Refers to the physiological processes that convey pain signals from the body's peripheral receptors through the spinal cord to the brain.