ethics, accounting and auditing
DESCRIPTION
Ethics, Accounting and Auditing: Case Study Enron and Arthur Andersen.TRANSCRIPT
Ethics, Accounting & Auditing
Case StudiesVictor Rodriguez, Ph.D.
LeidenMay 30, 2012
Outline
• Learning outcome• Case 1 (USA) Enron• Open discussion
MNGT 3400 Human Resource Management
Case 1 (USA) Enron
• Business model: commodity trading, extrapolation
• Executives, managers, board of directors• Auditors• Accounting issue: off-balance-sheet
partnerships (moral hazard)• Ethical issue: fraud
MNGT 3400 Human Resource Management
Open Discussion: Public Companies
• What do these scandals mean for the future governance and control of public companies?
• Can these calamities happen again? Why or why not?
MNGT 3400 Human Resource Management
Open Discussion: Accountants/Auditors
• What were the corporate values of the firm?• How did the firm build their strong culture?• In your view, what were the reasons for the
firm’s problems?• What internal factors contributed to changes in
the firm’s culture?• And external factors?• What would be your advice in terms of SHRM?
MNGT 3400 Human Resource Management
Sources
• Diermeier et. al. (2011) Arthur Andersen (B): From Waste Management to Enron
• Lagace (2012) Innovation Corrupted: How Managers Can Avoid Another Enron
• Rajan & Tayan (2008) Financial Restatements: Methods Companies Use to Distort Financial Performance
• Williams & Takeshita (2012) Olympus and the Whistleblower President Christopher
MNGT 3400 Human Resource Management