Magic Carpet Airlines (MCA) was not successful to make a very productive, effective negotiating plan. MCA had utilized temporary members for their negotiating group who were neither arranged for the discussions or comprised transitional appointments in the company. For instance, Bill Orleans and Ross Irving were working on the team together. Bill recently had been demoted from his position and Ross came to his position and they were working together. It was uncomfortable for Ross.
Every company should be made up of the powerful guiding group with consist of the right people that demonstrated teamwork (Kotter, 43). “Trust is often missing in senior management teams, although top managers loath to admit this in public” (Kotter, 50). HP CEO Mark Hurd, admitted to not living up to the company’s standards of trust, respect and integrity (Ivancevich, 229). In this instance it’s hard to say what the directors should do since in all three case they didn’t have much evidence to go by. Their selection process is okay since it’s based on a career-long venting process (Ivancevich, 227).
In fear of losing her job, she does not report the mistake to her supervisor. How should the employee have handled this situation and what should the supervisor do when the situation is disclosed? How does the AICPA Code of Professional Conduct relate to ethics? Provide examples to support your response. The CFO for a corporation deliberately misstates expenses on the income statement purely out of a sense of loyalty to his CEO and the company.
The third and final thing that QuikTrip doesn't execute quite as well as they could is the use of their employees' ideas. They have the foundation for it to work, but it doesn't and the reason it isn't as successful as it could possibly be is due to the fact that there isn't enough incentive. QuikTrip has resource groups that meet to discuss and bring up issues that happen on every level of employment within the company. If they do have a great idea there isn't any significant recognition for them. It is for the most part a voluntary program and when all of the employees meet to discuss the topics that the resource groups have come up with nobody takes it seriously.
What was the primary motivation behind the decisions of Arthur Andersen’s audit partners on the Enron audit: the public interest or something else? Cite examples that reveal this motivation. The primary motivation behind the decisions made by Arthur Andersen’s audit partners was the revenue generated for their company. Arthur Andersen failed to act on their own internal policies when concerns brought up by the quality control officer were dismissed and the quality control officer was fired. This left the firm vulnerable to the decisions of the people with the most to gain from the audit.
There were also unethical issues involving the entity that was supposed to secure and watch over those that are investing our money. That entity, known as the Securities and Exchange Commission, failed to properly investigate certain claims that were made against Madoff long before this scheme broke wide open. The SEC was warned numerous times about the inconsistent information from Bernie Madoff. Ethical misconduct within this case has made more investors aware of what is needed besides forking over large sums of money and charitable contributions to someone who claims they are doing the work of the people. Investors now know that it is also their job to challenge and be more “in tune” to what their money is doing and how their money is working.
How did this probably contribute to the lack of proper governance? The lack of proper governance was the down fall of the company. A CEO should know what is going on with the operations of the company. Failure to know what is going on in the company can affect the operation of the company. The CEO should have noticed that the revenue was overstated on the financial statements.
K Marts 10 Deadly Sins Heidi Taylor Overview of the case: Kmart was once the leadear in discount retail but with many costly mistakes like Brand Mismanagement, not knowing the customer, and underestimating their competitors not updating their technology and a general lack of focus the company went bankrupt. This was followed by a merger with Sears another struggling retailer. Though the company has been trying to turn around they have to compete against retail giants like Wal mart and Target who have strong brands and provide better customer service. Lots of companies fail because they do not adapt to changes in the marketplace. Kmart is guilty of many “Deadly Sins” and how they operated their company.
The source codes are executable using Microsoft Excel, Access, or Open Source software. Financing and Accounting analytical roles are to analysis information that comes through their organization pertaining to their sales and services provided to their customers. Having a faulty system cause the department to fall behind on some of their serious obligations. At the end of each week a report was due to the headquarters office concerning their accounting procedures. Because of the problem with source coding their business clients and customers information was in jeopardy of being corrupted by its own system.
Unit 1 Project Separation of Consulting and Auditing Firms Independence is a critical component of being able to successfully audit a company. An auditor loses independence when focus lies on the company and not working separate from the company. This was the case of Arthur Anderson and the organizations involvement with Enron as an auditory and a consultant. The Enron case shook up the financial market and caused many investors to question the accuracy of financial statements. The fear brought many negative affects to the finances of companies and to the areas of auditing and consulting.