Prepare paper in which you address the following: evaluate the planning function of management at Arthur Anderson.© BrainMass Inc. brainmass.com October 9, 2019, 9:56 pm ad1c9bdddf
The response addresses the queries posted in 1529 words with references.
//Before writing the Evaluation of Planning Function of Management, we have to illustrate about the brief knowledge of Arthur Andersen, which we will describe under the heading of introduction, for example: //
In 1913, Arthur Andersen was founded by Arthur Andersen and Clarence Delany by the name of Andersen, DeLany & Co. In 1918, it was changed to Arthur Andersen & Co. It provided auditing, tax and consulting services for the large companies, and itself had a position in the "Big Five" accounting firms. In 2002, this firm was found guilty for auditing an energy corporation, Enron and it surrendered back its rights of auditing. This led to Enron's bankruptcy and loss of 85,000 jobs.
//Now we will elucidate about the working and planning of the Arthur Andersen. This is not a complete description; but after reading this, one can take an overview about the Planning Function and its Evaluation Process. //
Evaluation of Planning Function
Business development requires continuous planning. The term planning refers to defining the goals of the organization and determining the future plans of action (Robbins, 2005). This planning has to be in the favor of the firm and its stakeholders. The planning of Arthur Andersen was also committed to building the reputation of the firm and there was an equal distribution of profits between the firm's partners. In the long run, the disputes regarding profit sharing between its consultants and partners, led the division of firm into Arthur Andersen and Andersen Consulting.
Enron was the biggest client of Arthur Andersen for accounting, consulting and auditing but due to some problems in auditing, Arthur Andersen involved into a legal issue due to the case of Enron Corporation in 2001. It shared all the documents related with Enron's auditing and the lawyers of Enron sued the firm for violating its legal responsibility. This resulted into the loss of firm's reputation and the firm collapsed. The initial retention policy of auditing papers of the firm was violated in the case of Enron Corporation.
In this manner, the company failed to follow its planning function of management. The planning for distributing equal shares of profit failed when the company gained more profit. Its planning to keep the records of the audited firm was failed in the case of Enron Corporation. For this, the lawyer of the Enron Corporation sued Arthur Andersen and the company had to collapse its business. Thus, the planning of Arthur Andersen ...
This solution discusses the planning function at Aurthur Anderson in 1285 words with three APA references.