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volume 8 Issue 2

IMA Educational Case Journal
ISSN 1940-204X


George Joseph, University of Massachusetts Lowell
Mark Myles, University of Massachusetts Lowell

MOULDER CO. IS A U.S.-BASED MANUFACTURER OF STADIUM SEATING. This case illustrates the use of capital budgeting to respond to environmental regulatory issues from a business perspective, integrating environmental concerns with business priorities. Increasingly, stakeholder pressures, cost containment, and potential product development opportunities increase the motivation for companies to address environmental issues proactively. The case addresses the complexity surrounding environmental investment decisions, with factors such as environmental cost identification, capital budget criteria, and integration of environmental factors such as risk and taxation that facilitate a more detailed analysis of pollution prevention options. Overall, the case provides a forum to illustrate how management accountants can play a significant role in supporting the increasing complexity of environmental regulation. The case could be used in an MBA-level or Master’s-level course or an upper-level undergraduate management accounting course that integrates sustainability and managerial accounting concepts.
Keywords: environmental costing, capital budgets, toxics regulations, risk analysis, tax implications.
Ron Messer, Kwantlen Polytechnic University
THIS CASE STUDY BASED ON A REAL FINANCIAL INSTITUTION requires students to students will identify weaknesses in the internal control processes described, which relate to the operations of a trust company. Students will also determine the appropriate controls that need to be in place and their purpose make suggestions for audit tests that will identify whether any improprieties have occurred. This case is particularly timely, as the aging baby boomer generation places significant assets in the care of third parties. The case is intended for a course in auditing, risk management, or management accounting. It is based on actual events that resulted in significant loss to a financial institution, as well as a great deal of negative publicity. To maintain confidentiality, the names of the trust company and persons involved have been changed.
Keywords: internal controls, fraud, audit, risk management.