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建立人际资源圈美国论文代写：The board of directors
2017-05-13 来源: 51due教员组 类别: 更多范文
本篇美国论文代写讲了董事会被任命为代表股东行事照顾日常事务。董事会的主要目的是指导公司的事务，以确保公司的繁荣，代表股东和利益相关方满足利益。在公司董事会的职责方面，董事会一定要真诚地为公司，利益相关者和股东的利益行事。本篇美国论文代写由51due论文代写机构整理，供大家参考阅读。
The board of directors are appointed to act on behalf of the shareholders to look after the daily affairs of business. The key purpose of the board of directors is to direct the company’s affairs in order to ensure the company’s prosperity, and to meet the interests on behalf of its shareholders and stakeholders. In terms of responsibilities of a company’s board of directors, the board must always act in a good faith for the interests of the company, stakeholders and shareholders. The board can use its power only when it’s appropriate to use. When there are conflicts of interest between the company and their own, the board of directors must always go with the company. The board of directors should be skillful in their position and act with care to the business and the company. In addition, the board of directors must consider the interests of the employees in the company.
For the board of directors at Enron, especially the audit committee, they could have prevented the fall of Enron, and they should have known about the risks and apparent lack of independence with Enron’s SPEs. The role of the board of directors is to establish vision, mission and values for the company, set strategy and structure, delegate to management, and exercise accountability to shareholders and be responsible to relevant stakeholders. Clearly, the board of directors should hold board meetings periodically so that the directors can discuss and consider about company’s current situation, strategy and policy. And, as the professionalism in accounting and audit, the audit committee should act with skills and care to company’s business. They should raise the situation and issues in front of the board of directors during the meeting, and give opinions about the current issue, the concerns about company’s future, and the recommendations on how to make the company and business better.
In this case, for Enron, it is obvious that the board of directors, especially the audit committee, didn’t fully act and fulfill their responsibilities, didn’t direct the company’s affairs onto the right direction, which eventually led to its bankruptcy.
Question 7
Enron and Andersen suffered severe consequences because of their perceived lack of integrity and damaged reputations. Although both firms experienced a similar process as they went broke, there existed two different ways of collapse.
“Run on the Bank” is a term originally referred to the situation when a large number of bank or other financial institution’s customers withdraw their deposits simultaneously due to concerns about the bank’s solvency.
According to Skilling’s testimony during the House Energy Commerce Committee on February 7, 2002, Enron’s failure was due to a classic “run on the bank”, which is a liquidity crisis spurred by a lack of confidence in the company. At the time of Enron’s collapse, the company was solvent and highly profitable. The only issue was that Enron was not liquid enough. Enron’s failure was ultimately due to a collapse of investor, customer, and trading partner confidence. However, there is no doubt that the new business model at Enron was profitable. The analysts contributed to the view that Enron was the new model of business of the future. If Enron solved its liquidity issue, the company went through this crisis. The company may be return on the track some day in the future.
However, in terms of Andersen’s collapse, it is not the case with “run on the bank”. First of all, Andersen’s failure was not due to liquidity issue. The company failed simply because of its problem with its accounting and consulting business, which is its primary business sector. Secondly, Andersen didn’t raise lots of debt and tried to make off-the-balance sheet to make liabilities away off from the balance sheet. Although Andersen’s many top clients quickly dropped the firm in the wake of Enron’s collapse, those top clients lost their confidence and trust in Andersen’s skills and work, it didn’t make Andersen’s failure as a result of “run on the bank”.
Question 8
According to the case, by 2001, Enron become one of Andersen’s largest clients. Andersen had identified $51 million of misstatements in Enron’s financial statements but decided not to require corrections when Enron balked at making the adjustments Andersen proposed. Clearly, we see that Andersen had difficulty with making tough accounting decisions that may be contrary to their client’s position on an issue.
In 2000, Enron reported that it paid Andersen $52 million, $25 million for the financial statement audit work and $27 million for consulting services. Despite the large fees Enron paid to Andersen, the accounting firm also acted as internal audit role at Enron. This is the critical role that Andersen played when working with Enron. For auditors, it is difficult to do the things that clients do not want you to do, because the perceived conflict appeared when auditors receive significant fees from their clients.
Since auditor independence is fundamental to the reliability of auditor’s reports, it is important to consider the changes that the profession should make to eliminate the obstacles like Andersen and Enron. For the firm, it should know how and why undue management influence and how provision of non-audit service will undermine auditor independence.
First of all, the accounting firm should realize that the management of clients continues to influence on the auditors, which will affect auditor independence. Secondly, for accounting firm that provides non-audit service to the clients, they should understand the conflict of interest that arises from the non-audit service to audit clients is the fact that the audit firm is really serving two different sets of clients.
In terms of the changes that the profession make to eliminate these obstacles, the accounting firm should have separate profession that work for internal audit and external audit. The accounting firm should set up the firewall in case of their discussion that might affect each other’s independence on audit reports. Furthermore, the accounting firm should train the auditors about the possible situation and appropriate movements that the auditors should take. The accounting firm should also set up an escalated process for the auditors that face with the unsolved situation and provide help accordingly.
