Enron case Essay Example | Topics and Well Written Essays - 1000 words

Enron case - Essay Example The companies’ acts usually serve to offer adequate regulatory approaches, that auditor and companied to adhere to. With this respect, it is a requirement of SEC that all public corporations should have outside auditors to undertake the auditing process. This implies that an outside auditor is supposed to offer opinions regarding the precision and reliability of the company’s accounting statements, taking into consideration the principle of objectivity, lack of biasness and avoiding the engagement in activities that are likely to result to lack of auditor independence (Haines 14). As a result, auditors are required to display utmost ethics and honesty in the code of duties, which requires auditors to display integrity, objectivity and independence. The regulatory oversight that resulted to the Enron fraud is a violation of the aspect of auditor independence as evident by Andersen having an office space in Enron’s headquarters that was permanent. This served to re veal lack of auditor independence (Hill & Cronk 10). In addition, there is a possibility that Andersen overlooked Enron Corporation’s compliance with the required accounting policies, procedures and practices. In addition, Enron Corporation had relied on the auditing services from Andersen, resulting to him familiarizing with the corporations accounting policies and practices. The Enron scandal served to reveal the significance of auditor independence; as a result, the fraud served to question the efficiency and the adequacy of the present audit independence regulatory frameworks. The auditing procedures prior to the Enron fraud were sufficient to ensure that there is high audit quality, but in some cases fails to identify misappropriations (Hodgetts & Luthans 33). There have been significant changes in accounting regulations after the collapse of the Enron Corporation with the main

Leaders and Managers Term Paper Example | Topics and Well Written Essays - 750 words

Leaders and Managers - Term Paper Example This essay discusses that the role of a manager and a leader in the organizational setting are different with respect to their function within the group. Gomez-Mejia and Balkin describe a leader as an individual â€Å"that energizes people to contribute their best individually and in cooperation with other people†. The description or definition identifies key elements of the role that distinguishes a leader from a manager. Schein says leaders are responsible for creating and establishing the culture within an organization. Similarly, leaders foundationally and fundamentally form the mission of the organization and create the environment within the culture in which the operations of the organization will function. Generally, the term leader carries the mystic of a person with a larger than life personality and presence that is able to get others to do behave in certain ways. Whereas the depictions of such personalities describe a particular type of leader the basic trait of inf luencing others is applicable to the organizational setting. According to Maxwell, â€Å"Leadership is influence nothing more, nothing less†. His statement affirms that a leader’s primary function within an organization is to influence others giving direction and guidance to the activities within the organizational structure and culture. Leaders influence what decisions are made, how to implement the decisions chosen and assist in formulating strategies to divide the labor between the specialized work groups to meet the goals and objectives of the organization.... On the other hand, a manager’s presence and interaction with workers in the organization is vital for ensuring and maintaining a healthy culture. Another responsibility of his or her role is to make certain the processes within the organization are in alignment with the strategic goals. Using a face-to-face and hands-on approach according to Schein (2004) produces higher efficiency and cohesion within the organizational culture. He uses the term â€Å"visible management† inferring the importance of managers’ visible presence within the organizational culture and the significance of a manager’s accessibility for workers (p. 228). Management in the â€Å"New Millennium† as described by Gomez-Mejia and Balkin (2002, p. 4) and because of globalization and the decentralization of the organizational design is rendering the traditional manager ineffective in the current environment. The new environment does not allow a manager to perform his or her duties in isolation without human exchange and interaction (Schein, 2004). The system of management and managers in the present competitive and technological climate requires those in managing positions to develop additional skills for higher levels of efficiency in response to the evolving external and internal environments. Schein (2004) suggests three types of managers exist in an organization: 1) strategic, 2) tactical, and 3) operational (pp. 4-5). In his analysis the hierarchical design reflects a top down organizational structure with the strategic manager representing the senior executive level of managers or the upper level of management. In the role of a strategic manager one responsibility is to develop the strategic goals