Nichole McCoy – ISAS610 – 9041 Risk Management How does a risk management team work to identify and mitigate risk within a company? University of Maryland University College Graduate School of Management and Technology In the article, “Embrace the Risks,” by Charles Babcock, he discusses how risk is an everyday part of doing business, and must be accurately accessed to stay competitive. Of course, it’s impossible to eliminate risk all together, especially in the insurance or financial services industry. He explains that there is a tendency for companies to try to eliminate the risk, and in doing so, they overspend. For this reason, the only solution is to have a good risk management plan in place that focuses on the larger threats.
The contracted agency is chosen because of their knowledge and expertise on a particular matter. If principal-agent theory is used to help the principal, why is it labeled “principal-agent problem”? Certain issues that may arise are inflating costs or trying to fix problems that they are not qualified to handle. With the agent having more knowledge than the principal, the principal is trusting that the agent has honest intentions and will complete the task successfully, without causing more issues. The presentation, Whistleblower Fired for Exposing Truth/Corrupt Government Contractor, followed a former director of American Eagle, John Jack.
Therefore, any organization should be taken care if hiring the consultants. Introducing the Balanced Scorecard for compensation only. Obviously, linking strategy to compensation is a powerful lever to gain the attention and commitment of individuals to strategy. Some companies, however, forget that they must translate the strategy into terms each of their employees can understand and use in their everyday activities a key component of implementation
An efficient, effective, and successful accountant must be prepared to adhere to a steadfast code of ethics. At some point in their career, most accountants will encounter challenges that will test their resolve. There will inevitably be pressure from clients and others to manipulate financial statements or to reveal confidential information they feel may give them an economic advantage. Therefore it is important that accountants learn to practice with impeccable ethics and maintain a level of professionalism that is beyond reproach. According to the American Institute of Certified Public Accountants Code of Professional
Describe how professional values and ethics can influence career success: As previously defined professional ethics are a moral value one takes in the specialized knowledge of their business which can discern over time. Most business owners are generally in dispute with moral obligations and ethical conduct in the work place environment. For instance, some business owners may have clients that receive special benefits or items that they can sometimes bribe or use to their advantage. This is both ethically and morally wrong. Although it would appear wise to accept gifts or provide gifts to another company to earn their business you are in fact interfering with normal business practices and in most companies can be a reason for termination for such actions.
In business ethical decision is a must thing and to succeed in the long term, it is important to be ethical in every aspect. Not only within the company and customers, but also along with every stakeholders and to the environment. Almost every successful company in this world today has their own code of conducts to provide a guideline for their employees. According to Garrett and Klonoski (1990), “ethics are nothing but an individual’s personal beliefs about whether a behaviour, action, or decision is right or wrong.” Mainly this issue is defined in the context of individual, where ethical behavior varies from person to person and this behavior also conforms to generally accepted social norms. Ethical behavior in an overall business including welfare for the society is actually the ethics in a business firm.
You believe that your manager is wrong in his critique, and that he might have come to this conclusion hastily without knowing all the information. You feel you are being treated unfairly in front of your peers. You feel that your reputation may be affected by this critique. What would you do in this situation? 2) What would you do if the work of a subordinate or team member was not up to expectations?
1 requires that "in all matters relating to the assignment, independence in mental attitude is to be maintained by the auditor...he must be without bias with respect to the client. "26 Because a principal purpose of auditor independence is to provide assurance to investors, the accounting profession has long required independence not only in fact but also in appearance. SAS No. 1 states, "Public confidence would be impaired by evidence that independence was actually lacking, and it might also be impaired by the existence of circumstances which reasonable people might believe likely to influence independence. "27 Accordingly, "Independent auditors should not only be independent in fact; they should avoid situations that may lead outsiders to doubt their independence.
We describe BSC as a carefully selected set of measures derived from organization strategy. BSC are used as a measurement system, Strategic Management System and a communication tool. BSC mainly assists in: Effective organizational performance Implementing strategy Single most important question before you embark on a balance scorecard is why are we developing a balance scorecard for the organization , why now? To know that it is a good management tool is not good enough a reason to have it for your organisation. In the absence of stated reasons for using BSC, the employees will perceive it as a tool used by boss to generate terminations.
That is the most important part of not only the AICPA but of accounting itself, honesty, because if the public does not trust the accounting field, accountants have not done their job. I believe the three most important purposes of the AICPA Code of professional conduct is honesty, due care and integrity. Honesty is the most important because in order to fully complete accountant’s duties, they have to be completely honest in their paperwork. They cannot lie on their paperwork without missing the second most important purpose integrity. Integrity is the trait that an accountant needs to have in order to be completely honest, integrity is the act of knowing right from wrong and following through with doing the right thing, and being honest is one of the ways that an accountant can insure that they are following the AICPA Code of professional conduct.