International Journal of Business and Management, 5(10), 37-41. The case analysis of the scandal of Enron. International Academy for Case Studies: Proceedings, 9(2), 1-6. Enron Corporation: From boom to bust-a case study. By viewing a company as a single organism and conducting work on risk assessment, specification of weaknesses and strengths, and the preparation of relevant recommendations, internal audit seems to ensure continuous effectiveness. The above advantages would allow internal auditors and employees of a company to act solely in its interests and, at the same time, remain formally and actually independent in assessments and recommendations. The advantage of the internal audit before any other services of a company is its independence ensured by the structure of subordination and specific relationships with management as well as a unique knowledge base and experience accumulated during the years of audit (Markham, 2015). Suggesting that auditors target control at the level of the entire organization, especially in large accounts, serious processes and procedures where violations can lead to significant losses should be the object of the mentioned act. There have been several changes with auditors since audit and consulting were divided, and auditors’ rotation was introduced. The regulation regarding corporate culture would be a valuable advantage to enhance the given act. Accordingly, the tools of society that measure and record the above elements are essential and may include business journalists, analysts, rating agencies, etc. #SARBANES OXLEY CONVICTIONS CODE#In this regard, the focus on corporate culture, the code of ethics, some non-material incentives, and reputation seem to be missing in the Sarbanes-Oxley Act. The act is named after its creators, Senator Paul Sarbanes and Representative Michael Oxley. The more transparent a firm, the better the market understands what happens with it. The Sarbanes-Oxley (SOX) Act of 2002, also known as the Corporate Responsibility Act, is legislation aimed at improving financial activities and financial reporting. If the director or officer is convicted of a securities law violation. After the scandal with Enron, business schools began to discuss ethics as an integral part of any company. President of the President of the Sarbanes-Oxley Compliance Professionals Association (SOXCPA) 1200 G Street NW Suite 800, Washington DC 20005, USA - Tel: (202) 449-9750. Congress passed the Sarbane-Oxley Act in 2002, which established rules regarding. Learn More Preventing Incidents Similar to that of EnronĮnron’s financial falsification that involved the board of directors, managers, and external auditors is a lesson for the entire business community.
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