Chief Finance Officer, Controller, Financial Asset, and Growth Stock

FIN301: Principles of Finance
Module 1: Case Template
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Question 1: In your small business you have a finance department with a CFO, controller, and treasurer. For the following scenarios, explain which of these three financial executives would be the most likely to work on the issue based on the descriptions of the roles of the CFO, controller, and treasurer from Peterson and Fabozzi (2010) from the required reading.
* You suspect that a lower-level employee has embezzled around $50,000 over the last three years and you want to try to find out who based on past financial records. Who would be most likely person to look into this issue – the CFO, the treasurer, or the controller? Why?
ANSWER:
The controller would oversee the issue because they have an important role in controlling an organization's accounting information. The controller ensures that all financial records are accurate, including payroll information. They are responsible for overseeing any audits of the company's books. Investigating the individual responsible for funds embezzlement would require access to all the company's financial records. Hence, a controller would best fit in this job because they have unlimited access to these documents. The controller would examine the records of any transactions that took place during the time period in which the embezzlement occurred, hence making it easy to identify the responsible party. The controller would also be able to identify any patterns in the transactions that could help them determine if there was a single person responsible for the embezzlement or if it was a group effort. The controller would then present their findings to the executive board and recommend disciplinary action against those involved in stealing from the company.
* Your chief marketing officer wants to take out a large loan to finance a major advertising campaign that he claims will bring in large sums of new profits over the next few years. However, your chief operating officer wants to take out a large loan to purchase some new equipment and machinery that she claims will save your company a lot of money over the next few years. You would like to see some estimates about which of the two projects will be most likely to increase profits enough to be able to pay back the loan. Who would be most likely person to look into this issue – the CFO, the treasurer, or the controller? Why?
ANSWER:
The scenario would require the involvement of the chief financial officer because they deal with issues related to financial improvements. The CFO would also be involved in the decision-making process because they are responsible for creating strategies that improve an organization's performance and financial health. Financial improvements are an important part of any organization's success. They help companies improve their financial health and performance, making them more competitive and profitable. The CFO would play a key role in ensuring the company's financial improvement strategies yield returns. The investments would require a loan, thus putting the company under the financial obligation of making repayments (Liu et al., 2019). Therefore, it would need additional profits to c...