Legal And Ethical Issues Of The Audit Of Industries Essay

Legal And Ethical Issues Of The Audit Of Industries - Essay Example There will be danger of committing biases when providing the services and will eventually lead to unethical acts within the company. The second issue that can be considered ethical is when the company withheld, covered up and overlooked discrepancies in the company’s record (citation). The company was found to cover up and did not disclose accounting discrepancies of companies in which they provided their services. Evidences were obtained that suggest such acts were committed by Andersen. The third ethical issue that is present in the Andersen case is the company’s act of destroying evidences that can be used against them (citation). Ten days just before the U.S. Securities Exchange Commission formally started the investigation again Arthur Andersen, the management instructed their employees to destroy all potential evidences that may prove their illegal actions. This act can be said to be legally wrong too. This is a form of obstruction of justice because the company d id not disclose evidences that will help the investigation become successful. Question # 2 What role did Arthur Andersen’s culture play in their business? Arthur Andersen was one of the top accounting firms and considered to be one of the â€Å"Big Five† in the United States (citation). ... Question # 3 How would have the Sarbanes-Oxley Act will help minimize the likelihood of other accounting practices happening? Sarbanes-Oxley Act is the act passed by the Congress to â€Å"establish a system of federal oversight of corporate accounting practices† (citation). Because of this act, the accounting firms will be evaluated and monitored according to the established standards and rules of accounting firms. This act created the Public Company Accounting Oversight Board which is tasked to monitor the accounting firms (citation). Because of this law, the accounting firms will not provide both the auditing and consulting services to the same company as what Andersen did. This act will eliminate the conflict of interest. Thus, because of the passage of the act, unethical auditing methods will be eliminated and shareholders will gain confidence back and will soon invest to more efficient and effective accounting firms. Question #4 As an ethics consultant, what recommendations would you have made to the partner’s at Arthur Andersen? As an ethical consultant, I would have recommended to the partners of Arthur Andersen to eliminate and avoid any unethical methods and practices from the very beginning. They should have made an action to prohibit such acts in the very first place. If they knew about the said commission of unethical, if not illegal, methods, they should have come to the proper authority and reported about the issue. The proper authority will surely advice them about the proper procedure of what to do next. If only they have done what is right, they would have not lost multi-million investments. Laws were made to be followed based on fairness and justice. If they committed a violation of the law, they will face consequences.

Thatchers concept organizational rhetoric and the use of corporate we Essay

Thatchers concept organizational rhetoric and the use of corporate we on remarks on the passing of Ronald Reagan successfully demonstrated the significance o - Essay Example Thatcher also states that "We live today in the world that Ronald Reagan began to reshape with those words." She uses the decentering of self to illustrate the importance of Reagan to the people. Thatcher's use of Aristotelian proof and "corporate we" in her speech successfully demonstrated the significance of Reagan in every American's life. In the entire speech from Thatcher she states that with ending the Cold War as the big success and achievement from Reagan, you read between the lines that it also ended Communism. The fear for Communism itself however goes back in time right after WW II. The US represented the Capital West and the Soviet Union was the leading superpower of the Communist East. The roots where made are not easy to be changed in acceptance from both parties. The historical importance of the summits between the both parties formed the basic to a new world where the tension between the Capital West and the Communist East was ceased. Ronald Reagan did, in fact, brought the United States of America to the end of the most difficult period in our modern times. Thatcher is right when she states in her speech (2004) that Reagan had an outstanding sense of humor and ability in creating friendships with almost anybody. He turned our Cold War enemy, the soviets, into our friend. Thatcher shows that Reagan took u s out of our most difficult time and reestablished our economics. He also turned our enemy into allies. These show the effective use of logos under the Aristotelian proofs. On the remarks of the passing of Ronald Reagan the conclusion to be made is that Reagan was President at the right time and his personal character made it happen that both parties started to negotiate. Reagan was open minded. New York Times (2004) It was Mr. Reagan's good fortune that during his time in office the Soviet Union was undergoing profound change, eventually to collapse, setting off a spirited debate over Mr. Reagan's role in ending the cold war. His supporters argued that his tough policies were the coup de grace and his detractors attributed the end to the accumulated influence of 45 years of the American policy of containment. But wherever the credit was due, the thaw came on his watch. Gorbachev explains all this in the Washington Post (2004) But if he had warm, appreciative words for Reagan, Gorbachev brusquely dismissed the suggestion that Reagan had intimidated either him or the Soviet Union, or forced them to make concessions. Was it accurate to say that Reagan won the Cold War "That's not serious," Gorbachev said, using the same words several times. "I think we all lost the Cold War, particularly the Soviet Union. We each lost $10 trillion," he said, referring to the money Russians and Americans spent on an arms race that lasted more than four decades. "We only won when the Cold War ended." The fact that President Reagan's intelligent has greatly affected the United States of America. Thatcher states that "Ronald Reagan knew his own mind. He had firm principles and, I believe, right ones. He expounded them clearly. He acted upon them decisively. When the world threw problems at the White House, he was not baffled or disorientated or overwhelmed." These examples demonstrated the effective the use of ethos under the Aristotelian proof which made the speech successful. In Thatcher's speech, she didn't only use the