Contermporary Issues For Business and Society Essay

Contermporary Issues For Business and Society - Essay ExampleUsers of Enrons financial education fictive that the information availed was factual, reliable and could be used for sound decision-making. Enron scandal is the biggest audit failure and the largest bankruptcy reorganization in the American history. It is also the company that went vote down very fast and is the most known company in the world for its audit failure. This research seeks to analyze the causes of its failure and its consequences. When the Enron scandal was revealed, confidence in the smashing market went down, careers of people were destroyed, and lead to bankruptcy, economic loss, and erosion of public confidence and trust in the audit profession.Corporate managers are expected to maximize shareholders returns and extend business value. They have a responsibility to present the true picture of their organizations to the public, shareholders, employees, and the government. Businesses follow ethics in pres enting their financial information. Business ethics are a set of rules and precepts required in the preparation and reporting of financial information. They are set by the American Institute of Certified Public Accountants and include lord behavior, integrity, objective, confidentiality and professional competence and due care. However, they are not always followed and the financial information is sometimes manipulated. Several organizations have been in the news manipulating financial information and reporting it instead of the true information. Such organizations include Enron, Lehman Brothers, WorldCom, and South Sea Bubble.Responsible management is important to ensure the success of an organization. The management has a spot on implementing internal controls in the organization to prevent financial loss and frauds. It prevents embezzlement, asset misappropriation that could lead to loss of reputation,