For This Assignment You Will Need To Use The Library, The Internet, And Course Resources To Locate A Single Example (from Business, News Reports, Government, Economics, And So Forth) Where The Decisions Made Produced Negative Consequences.

Lessons from Enron : Bad Management , Negative ConsequencesOne of the classic examples of swingeing counselling , Enron s collapse according to the economist (2002 ) was a result of bad direction and poor finish-making of the auditing inviolable Andersen in lotling the account statement of the confederacy . The primary root of Enron s collapse was bad steering and the power of the precaution to delegate auditing and accounting responsibilities to a firm that they have chosen . The dependence of the auditing firm on the management in essence creates the break in the accounting and auditing ethics : in not to lose an all-too important account such as Enron , they would need to abide by the decisions of the management . The miss of willpower of Andersen to question the unethical practices of Enron made it culpable in the same way as Enron s managersThis led a half mask and cascading effect in the corporate world of America : the politics scrambling to look for other companies who are also hiding in their auditor s books , the deterioration of the auditing and accounting profession , lack of authority in companies , and investor apprehension . The collapse of Enron was largely a decision by the top management which also involves its accountants to provide a bogus statement of finances to make Enron look equal a profitable friendship Auditors of Enron on the other hand , have sought to protect the company by shredding incriminatory documentsFrom an agency theory view , the role of the Enron s top management to that of the shareholders is one that is governed by the principle that managers will act in a way that will benefit the owners or shareholders of the company (Abrahamson and Park , 1994 . In essence what happened to Enron was that the managers or the agents gained too such(prenominal) power and the shareholders did not perform its function of overseeing the operations of their company .

Fundamentally , what the shareholders and the managers who did not take part in the Enron scandalisation could have done was to have the government to appoint an auditing or accounting firm that will monitor the financial transaction of the company In this way , accountants and auditors will not be obliged to follow what the top managers would expect them to doManagers need to be wary of decisions made by the top management or their colleagues . To a significant extent , appointments should be made freelancer of the managers . In an era where auditing and accounting fraud are general , managers can protect themselves by safeguarding their companies among their peersReferencesAbrahamson , E . and Park , C (1994 ) Concealment of negative organizational outcomesAn agency theory perspective . Academy of Management Journal , 37 1302-1334Barefoot , JA (2002 . What can you watch from Enron ? How to know if you are creating a climate of rule-breaking . ABA Banking Journal , 94The Economist (2002 ) The Lessons from Enron . 362 , 8259 : 9-10 . Retrieved 1 July at http /www .csupomona .edu smemerson /PLS499 20Greed_Need /Enron .docAppendix 1 . Enron ArticleTitle : THE LESSONS FROM...If you want to get a full essay, order it on our website: Ordercustompaper.com

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