Hulme Case Essay

3297 Words Oct 26th, 2014 14 Pages
Team Collapse at Richard, Wood, Hulme, LLP

EXECUTIVE SUMMARY

SITUATION ANALYSIS
Established in 1998 by Chris Richard, Gemma Wood and Lauren Hulme, Richard, Wood and Hulme LLP (“RWH”) is a financial services firm offering audit and taxation services to its clients with a mission of delivering excellent service and improving clients’ internal controls. Being a “team player” is an essential trait of a RHW employee because client audits are completed by teams. The client fee is flat, so the more efficiently and effectively the team members’ work, the higher the margins the firm realizes. The firm does not tolerate those with poor teamwork behaviors as evidenced by the fact that RWH has terminated only a handful of employees
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The company experienced difficulty entering these markets due to its reputation as a luxury home builder as well as intense competition among condominium developers. By the end of 2006, Spector had five total condominium developments under construction in Vancouver and Toronto. Unit pre-sales for these projects were much slower than anticipated at 50-80% lower than the industry average, but in 2007 the company decreased the deposit required on a pre-sale from 25% to under 5%. Consumers reacted favorably to this promotion and by the middle of 2008, 80% of the units were pre-sold.
After successful, on-time completion of the Spector audit in 2007, the successful, on-time completion of the 2008 audit for Spector is a challenge given the following current issues during the first two weeks of the audit: 1) Planning for an audit is generally completed several weeks or even months ahead of time by the most senior associate on the audit team. In Spector’s case for the 2008 audit, it was particularly important that planning for the audit was completed well in advance due to the current adverse economic circumstances (the looming recession in Canada, the collapse of the credit market and the housing bubble in the United States) combined with the nature of Spector’s business activities. However, audit planning was started by an employee that left the firm soon after she started, leaving the

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