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Essay on Enron's Scandal and Ethics
Were quality auditors to blame for the Enron scandal? No. Do quality auditors face ethical dilemmas such as those faced by the Enron and Arthur Andersen employees? Most definitely. Like Enron’s employees and executives, internal auditors must decide whether or not to expose information that might be harmful to an organization.
What other challenges do quality auditors face? Are any systems in place to protect auditors who disclose unethical or unlawful behavior? Two auditors and experts on quality management standards weigh in.
hen Enron declared bankruptcy last October and news quickly spread of Arthur Anderson's deceitful accounting practices, the scandals created a ripple effect that touched everyone from the company's chief executive officer to stockholders. Now, a year later, the ripple has reached schools as they teach future business people not to make the same mistakes.
More universities are incorporating ethics into their curriculum since Enron's bankruptcy, and administrators in the Lumpkin College of Business said Eastern is no exception to this trend. While the college has not changed its curriculum and does not plan to add any new classes, teachers and students are putting more emphasis on ethics in the classroom.
Bill Joyce, an accounting professor, teaches core accounting classes to students just entering the school of business. He said in the past students have been lukewarm to the topic of ethics, but now they are "perking up and listening more" when the subject is approached in class. Joyce said ethics have a stronger presence in exams, class discussion, lectures and guests speakers in the past year as a direct result of the Enron scandal.
"(Accounting teachers) have been going out of their way to include discussion about the scandal in class," said Michael Boroom, chair of the business department. Boroom said the recent deceptions at Arthur Andersen suggested more people were concentrating on how to make money and ignoring the ethical side of the accounting profession....
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