399 Accounting Theory Essay

399 Accounting Theory Essay 399 Accounting Theory Essay Under the unprepared external environment change atmosphere, Enron did not ready for facing the challenges but switch the leader in an inappropriate timing. The challenges have been occasioned by shifts in the market structures from being a government regulated public utility, to a deregulated free market, and the current free market structure (Dillard, 2011).According to the case of â€Å"collapse of Enron† three ethical issues could be concluded as deregulation, integrity of leader and dishonesty aggressive culture. Ethical issues The key ethical issues that led to the downfall of Enron Company are: * The first ethical issue leading at Enron Company is deregulation. The board of director and manager they did not access their duties. Management did not effectively control the financial risks. During the auditing or financing procedure, the internal control did not work well to complete the auditing and financial reports effectively. Skilling’s dictatorial management plus ignoring the laws and regulations leading the whole organization to the end of cliff edge. So many people involved in this financial scandal including the CFO Andrew Fastow being charged guilty to various criminal offences. The internal control mechanisms did not work at all. The audit reports did not reflect the real audit level. The accounting issue is Skilling circumvented internal controls by manipulating accounting and auditing statistic numbers which create bubbles. For example, Skilling controls over almost all facts of organization, particularly regarding its accounting procedures. Earnings management was accomplished largely using special purpose entities, accounting â€Å"reserves for contingencies â€Å"and mark-to-market accounting ,which recorded profits from long-term deals immediately and ,therefore, emphasized short-term results. The â€Å"cowboy capitalism† put pressure on the traders for short-term output. * The second ethical issue lacking at Enron Company is there is integrity of the leaders. There was a conflict interest which encourage by Skilling. When the external auditor does their audit procedures receive the extra extensive consulting fee. The relationship between director and auditor is extremely close personally that leading the invalid auditing process. Because of Skilling and the business unit leaders keep change the financial and audit record in a shady way, there is no chance for the firm to find out the poten tial risk earlier.. Skilling always change financial records to impress the analysts. (free ,2007) Compare to Kinder’s realistic leadership style, Skilling encourage blind loyalty to achieve the targets. Not only Skilling himself, but also unit leaders and employees learn to manipulate the system. Another critical trait of skilling’s leadership style was the importance of reward and status .the purpose of compensation plan is to enrich the executives, not to enhance profits or increase share holder value. Skilling’s leadership style had emerged over a number of years. â€Å"Skilling impressed lay when he proposed forming a â€Å"Gas Bank†, which took advantage of the fact that the short-term demand and supply for gas was chronically out of balance† (free,2007) * The third ethical issue affecting Enron Company is Dishonesty organization culture which Lack of transparence. This is the fundamental failure of morality.. Dishonesty organization culture affects many working areas. Under the ambition of Skilling and his Skilling style leadership, the whole atmosphere of the organization is too aggressive to control. Enron’s ‘rank-and-yank ‘machinations created â€Å"an environment where employees were afraid to express their opinions or to question unethical and potentially illegal business practices†. Enron has an obligation to follow company policies, to ensure accurate financial reporting, and to protect workers’ safety. Employees were encouraged to be ruthless in achieving their targets in disregard for the rules of their professions. The

Michelangelo Buonarroti Biography and Artwork

Michelangelo Buonarroti Biography and Artwork The Basics: Michelangelo Buonarroti was arguably the most famous artist of the High to Late Italian Renaissance, and inarguably one of the greatest artists of all time along with fellow Renaissance men Leonardo DiVinci and Raphael (Raffaello Sanzio). He considered himself a sculptor, primarily, but is equally well known for the paintings he was induced (grudgingly) to create. He was also an architect and an amateur poet. Early Life: Michelangelo was born on March 6, 1475, in Caprese (near Florence) in Tuscany. He was motherless by the age of six and fought long and hard with his father for permission to apprentice as an artist. At the age of 12, he began studying under Domenico Ghirlandajo, who was the most fashionable painter in Florence at the time. Fashionable, but extremely jealous of Michelangelos emerging talent. Ghirlandajo passed the lad off to be apprenticed to a sculptor named Bertoldo di Giovanni. Here Michelangelo found the work that became his true passion. His sculpture came to the attention of the most powerful family in Florence, the Medici, and he gained their patronage. His Art: Michelangelos output was, quite simply, stunning, in quality, quantity, and scale. His most famous statues include the 18-foot David (1501-1504) and the (1499), which were both completed before he turned 30. His other sculpture pieces included elaborately decorated tombs. He did not consider himself a painter, and (justifiably) complained throughout four straight years of the work, but Michelangelo created one of the greatest masterpieces of all time on the ceiling of the Sistine Chapel (1508-1512). Additionally, he painted The Last Judgement (1534-1541) on the altar wall of the same chapel many years later. Both frescoes helped Michelangelo earn the nickname Il Divino or The Divine One. As an old man, he was tapped by the Pope to complete the half-finished St. Peters Basilica in the Vatican. Not all of the plans he drew were utilized but, after his death, architects built the dome still in use today. His poetry was very personal and not as grand as his other works, yet is of great value to those who wish to know Michelangelo. Accounts of his life seem to portray Michelangelo as a prickly-tempered, mistrusting and lonely man, lacking in both interpersonal skills and confidence in his physical appearance. Perhaps that is why he created works of such heartbreaking beauty and heroism that they are still held in awe these many centuries later. Michelangelo died in Rome on February 18, 1564, at the age of 88. Famous Quote: Genius is eternal patience.