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Accounting of Enron

Accounting of Enron According to Desjardins and McCall (2005), David Duncan was a partner at Arthur Andersen, which was an accounting firm. With regards to the business dealings between Enron and Arthur Andersen, David Duncan had been appointed as the head auditor for Enron, and was thus expected to acquaint Enron’s management team of the firm’s position with regards to its accounts.Moreover David had a duty towards the stockholders of Enron whereby he had the role of a whistle-blower in case of any uncertainties in the firm’s financial records. Considering that he was also a player in the accounting profession, he had the responsibility of upholding the integrity of his profession, which, according to Marion (2001), entails reliability, competence, objectivity and above that, integrity.2The ethical responsibilities of a corporate attorney and as pointed out by Desjardins and McCall (2005), can be seen to include, the screening of clients’ reports before they are released publicly, and also the setting up of press-briefing meeting, in the case that any news or reports concerning the client firm, wants to be released to the general public.3An employee such as Sherron Watkins can act as a whistle-blower to the outside authorities with regards to the on-goings within the company in the event that the company engages in the breach of law or poses a threat to public interests (Nindya, 2010). Nindya further goes on to note that one should owe their loyalty to the ‘parts’, which make up the company, and who, as in this case, happen to be the shareholders.4 The board of directors, as pointed out by Desjardins and McCall (2005), owes its primary responsibility to the shareholders. This means that, all the efforts by the board of directors should be aimed at safe-guarding he interests of the shareholders in the company. In an attempt to ensure that the board meets these responsibilities, laws can be put in place, for example, and as Nindya (2010) points out, each of the board members can be required to pledge loyalty to the shareholders, with regards to their conduct and not just the company as an entity separate from its shareholders.5 Government regulators have responsibility towards business, the market and the general public. Focusing on business, as argued by Machan (1998), government regulators ensure that individuals are engaged in fair dealing and get value for their money. With regards to the market, Machan (1988) further goes on to note that government regulators should ensure that the market attains its optimum performance and that there are is no resulting wastage of resources, as a result of the activities within it. With regards to the general public, government regulators should aim at ascertaining that the rights of individuals are protected. This seeks to ensure that the rights of each individual are protected within a free market (Machan, 1988).6Accounting and law should be viewed as professions since, as Marion (2010) points out, society places high levels of ethical standards on such careers. The difference existing between the two is that, whereas business can be conducted without greatly impacting on the public, a profession cannot. ReferencesDesjardins J. R. amp. McCall J. J. (2005). Contemporary issues in business ethics (5thEd). Belmont, CA: Thompson WadsworthMarion M. A. (2001). Ethics in Accounting:Encyclopedia of Business and Finance. Retrieved on June 25 2012 from: http://www.enotes.com/ethics-accounting-reference/Machan T. R. (1988). Government Regulation of Business: The Moral Argument Retrieved on June 25 2012 from: http://www.thefreemanonline.org/columns/government-regulation-of-business-the-moral-arguments/Nindya R. (2010), Business Ethics: Whistle-blowing and Employee Loyalty. Retrieved on June 25 2012 from: http://www.slideshare.net/kappachan/business-ethics-whistleblowing-and-employee-loyalty

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