Internal Control and Accountability

Internal Control and Accountability Internal Control Systems and Accountability – The Volkswagen Perspective You are required to imagine that you are employed by a large plc company (Volkswagen).

Internal Control and Accountability
Internal Control and Accountability

You should produce one document which covers the following specific elements; 1. A commercial analysis of the chosen case company (25% weighting). To cover, inter alia, corporate history, the business model (how resources and capabilities are converted into a value), the industry and the wider environment. You should identify the core objectives and strategy of the business using the Porters Five Forces analytical model and SWOT analysis. Credit will be given for the quality of your analysis as well as the suitability of your evidence base and the relevance of your research on the company. 2. Your manager is concerned that the company should be fully accountable for its operations and has asked you to provide a brief review of the literature on accountability so that she can understand the different ideas that have been discussed and what their implications are for your company. (25% weighting). The review of literature should cover at least two articles/chapters that you have read that relate to the element of accountability that is of interest to you. Your review should synthesize the content of your readings and identify any points of conflict between these readings. Credit will also be given for identifying the practical implications of the contents of the readings for the case company and for phrasing the review in a way that is appropriate to the needs of your manager. You will also receive credit for the quality and originality of your sources. 3. A report to management analyzing and evaluating the internal and management control systems of the chosen case company. (50% weighting) In this section you will cover the following points; (a) You should identify one control issue that the company has faced in the last three years. You should describe this issue using a range of sources explaining clearly how the issue arose and what the consequences were for the company. You should then suggest a total of three internal control systems and/or management control systems that you would expect to be in place in the company to mitigate the risk of the control issue you identified previously. You should explain in detail how these suggested controls should operate and discuss any theory that underpins your selection of these controls. Please note that credit will be given for both elements and so you are strongly advised to identify control systems that could/should have prevented the past problems. (b) Evaluate whether you think the company is properly ‘accountable’ for its operations. In doing this you should draw on your review of the literature in 2 and the core objectives of the company that you identified in 1 to reach your conclusions. You may use any definition of ‘accountable’ that you feel is appropriate, provided that you can justify your choice of terms. Word Count: 3500 words Referencing Style: Harvard

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