Ethics Audit

Ethics Audit

Key Term: Ethics Audit

Definition

Refers to an investigation on how organization poorly or effectively perform to the ethical standards of the company or entire society. An ethics audit concentrates on company actions, grievances handling, financial disclosure, treatment of the whistleblowers, and the surrounding of the organization.

Summary

Organizations play different roles, but what matters its if there is a positive impact on the society of negative effects. When the company performs poorly, it affects even the society, not only the company. The article explains why the American company Enron collapsed. The article analysis ethics, which is the preventer or conservator of financial scandals and failures. There are various which contribute to the organization’s failure. The organization can engage in a scandal that can affect its performance negatively. For example, an internal audit in the company failed financial aspects and the moral aspects due to the deception, fraud, bribe, and speculation. Hasen Mohamed A. Albeksh indicated that auditing plays a significant role in enhancing the intranational operations and economic companies. The company was a regular need for weakness in the concept.

The research clarified the committee in the company was compatible with financial documents needs, which stated that the case was not about regular demands but an ethical issue. The importance of the article was seen in the fact that companies are influenced to give focus and establish changes to protect the organization and its future.

.  (Albeksh, 2016.

Discussion

 

For the company for failing, its somethings which any company can face. Various impacts are associated with the organization’s failure. Lie in this case, the company was unable to do some things ethically, and later, it failed. The financial statements were overexploited and manipulated by the operations and actions, which caused the company failure. Any company can make fail to its effects because of the things which be beyond its control, like government regulations. The company, in this case, failed because of internal issues. Audits ethics it’s about how the organization examines itself and see the performance progress. The two concepts are closely related because the failure of the organization to practice the audit ethics, then failure won’t be avoided. For the company to be successful, it must adhere to the requirements. In the case study, the company did not comply with the audit ethics, which made it collapse.

In any company, the company needs to have a plan on how the organization will be operated. Failure to have an excellent program to follow might make the company fail. The organization might do well internally, but outside, things might not be pleasant. This implies that the company might be doing well inside, but society might be suffering. When society is not contented about company performance, then the progress of the company might not be useful in the long run. That’s the reason why the company should incorporate audits ethics when undertaking various activities. This might assist the company and society at large. The company should plan the way forward to treat people in their workplace. For instance, if someone reports illegal actions, necessary actions should be applied to protect the person who said the case from isolation or losing his/her job.

 

 

References

Albeksh, H. (2016). The Crisis of the Ethics of Audit Profession: Collapse of Enron Company and the Lessons Learned. Oalib, 03(11), 1-18. doi: 10.4236/oalib.1103205