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Accounting for Enron

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Submitted By moniczka8
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Accounting for Enron

1. As a partner to the firm, David Duncan had the responsibility to maintain a clean name for his auditing firm. He was supposed to apply his knowledge and wisdom to market his firm but failed to do so. As an auditor to Enron, he ought to have given a true and fair value of the company’s accounting records. He was also supposed give his expert views on the various financial huddle facing the company. Furthermore, he had a duty to report the company’s true and fair value to stockholders according to the records he audited. As an auditor and accountant, Duncan is required to maintain ethical behavior and act professionally. This means that he should be independent and truthful always. 2. A corporate attorney should always ensure that the client is not involved in fraudulent activities. They are also required not to engage in any unlawful acts in the name of protecting their client. Ethics require corporate lawyers to withhold from acts that may hinder justices. 3. When an employee is sure of illegal activities that are likely to jeopardize the company’s existence undertaken by the employer, they can always blow a whistle. She owed loyalty to investors since they were the ones who run the company. Without investor, the company could not have existed and so could have been to her job.

4. The board of directors is involved in the management of the company. They are responsible and answerable to stockholders since they are appointed agents to act on behalf of the shareholders. Company law provides that since directors are agent to stockholders, they should not use confidential information to benefit themselves. Directors are criminally liable if they violate this law.
5. Government regulators set and enforce rules for business operations. They work to provide a conducive business environment. Government regulators work to ensure that…...

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