Financial circumstances Essay

The beau monde was a well growing established retailer industry in the commercialise, how ever cod to the scandal charges against Wickes. This caused a lot damage to caller-up itself, it gave Wickes a bad status in the market and also they were contraband listed which meant that the comp whatever had a poor financial history so thusly in the future they allow be refused on credit products and any other kind of financial circumstances. On the same day the gild got black listed which was on the 25th June 1996, the resolve of the scandal was exposed to the public.The announcement of the scandal instantaneously affected the social clubs market honour to 150 million pound and the stock was suspended from London market trading. So in order for Wickes to operate the argument back to the demeanor it was they refurbished its corporate management and also made emends with any sh areholders and suppliers they had. This took the company a good two years of hard farmment. Bye the end of 1998 the companys profits increased by 653 million pound so therefore sales rise by 27%. They instituted three pertly stores and redesigned locations to include ornamental and garden commodities.The fraud scandal could scram been frustrateable in many ways, Wickes became aware of this misadventure when scandal exteriors and auditors thoroughly manipulate the books and notice the major extensive changes. How ever this could contain been notice at an early stage. Wickes could carry out monthly or yearly check ups on transactions account to notice any changes or defalcate mistakes occurred in the business. Wickes could employee national audit internal audit will repair the function of the organisation and consulting action which will be intended to land value to the business, along side meeting the companys objectives.The organisations objectives will be achieved by bringing an efficient approach to evaluate and develop the efficiency of risk management, control and gove rnance processes. Although to bring in an internal audit to check the operation of the business yearly will be expensive. In my opinion I personally think that Wickes will be able to pay for the expense of an internal audit as they are a fast established business which creates good profit. This will be beneficial for the business as a whole.Another suggestion to prevent the scandal could be to have good ethics and standards in place. The following(a) charges which were made on the defendant were producing simulated statement and giving false information to the auditor (Arthur Andersen), so therefore Wickes could locate a agreement which contains a principle of governing morality and acceptable conduct. They could do this by producing a code of ethics which all the employees will have to fallow and can not be broken. Therefore the company will have strict rules and have control over their employees.This will help the business to be safe and prevent employee misbehaviour. An additi onal idea is to direct various position to different individuals Henry Sweetbaum was the companys former chairman and caput executive. So therefore Wickes could have given two individuals them to positions alternatively of just giving it to one individual. If they were two individuals directed for them positions then they would have had an inter link with one another jobs and would have been aware of what each(prenominal) one is undertaking.So therefore I personally think that the incident of the scandal would have occurred earlier than later if the former chairman and chief executive roles were given to two individual instead of just one. In conclusion I personally think that the fraud scandal which arose in 1996 for Wickes was a huge turn around for the company and now due to this incident they will be more careful now in the future. Wickes will be more alert and aware of how to minimise the risks and the hazard which occur in a scandal.Referencinghttp//www.telegraph.co.uk/ht mlContent.jhtml?html=/archive/1996/10/17/cwick17.html