Dead Organizations the Value of Essay

Open, View, and/or
Download this Document

Total Length: 622 words ( 2 double-spaced pages)

Total Sources: 1+

Page 1 of 2



In reality, entire segments of the value chains of these companies, and a core part of how they promised to deliver value, was erroneous or only partially true. After the passage of the Sarbanes-Oxley (SOX) Act and full auditing of the Enron finances it became clear that there were multiple sets of financial records, each designed for a specific audience (Petrick, Scherer, 2003). What had happened is that the undefined, ambiguous and difficult-to-audit areas of the value chain, left unchecked, began to gravitate into unethical practices and reporting to further support the unrealistic projections of profit (Petrick, Scherer, 2003). The same dynamic occurred at Tyco, MCI and others. Arthur Anderson was responsible for the auditing of the Enron financials and was guilty by association, perpetuating the fraud involved in the massive operations underway (Petrick, Scherer, 2003).

Stuck Writing Your "Dead Organizations the Value Of" Essay?

View All Our Example Dead Organizations the Value of Essay

Have A Custom Example Essay Written



Conclusion

In analyzing these companies who rise and fall so quickly, key lessons can be learned. First, the entire value chain of any complex business must be completely transparent. So transparent it can survive a SOX Audit (Petrick, Scherer, 2003). Second, firms must disclose the transaction workflows and audited results of transactions themselves over time. The lack of traceability for transactions in Enron, Tyco and others led to double-counting and inflating overall financial results. Third, the foundational assumptions of business models must be tested to ensure a very high level of autonomy delivered value to customers, not just claims of greater returns on investment or cost savings over time. All of these factors will serve to clarify the true operations and value of a given enterprise......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Dead Organizations The Value Of" (2012, June 12) Retrieved May 17, 2024, from
https://www.aceyourpaper.com/essays/dead-organizations-value-59221

Latest MLA Format (8th edition)

Copy Reference
"Dead Organizations The Value Of" 12 June 2012. Web.17 May. 2024. <
https://www.aceyourpaper.com/essays/dead-organizations-value-59221>

Latest Chicago Format (16th edition)

Copy Reference
"Dead Organizations The Value Of", 12 June 2012, Accessed.17 May. 2024,
https://www.aceyourpaper.com/essays/dead-organizations-value-59221
   

Open, View, and/or
Download this Document
order custom essay example