Week 5 Discussion questions Essay Example | Topics and Well Written Essays - 500 words

Week 5 Discussion questions - Essay Example Sometimes management is naà ¯ve and they think that the same rules apply to a company in a large scale. With growth come a lot of hidden costs to monitor a larger operation. Enron was the largest energy producer in the world. The company got so big that a lot of lower level managers and accountants could not see that a huge scam was occurring right beneath their feet. I think that companies are more vulnerable to this phenomenon when they are in their early stages of development due to a lack of economic resources to implement proper internal control mechanisms. I think that employee growth is often not managed well as company start growth. For instances when a company has thousands of employees it become harder to implement control mechanisms to maintain a drug free environment because it is too costly to test all the employees. Firms can only implement random testing of a small population of the employees due to cost constraints. Sometimes firm underestimate the importance of experience and they hire too many college recruits at once. Bad management of human resources complicates human resource issues. I believe that one of the biggest changes in the accounting profession is that accountants have become bigger assets of the managerial staff due to their ability to analyze business information. The utilization of accounting information systems provides companies with precise up to date information that can be used to make informed business decisions. Technology has helped managers and accountants a lot. The accounting profession is changing in the United States due to the influence of new regulations that arrived in the 21st century such as the Sarbanes Oxley Act (SOX) of 2002. A branch of accounting that will grow a lot in the near future is auditing and forensic accounting. Sometimes when companies begin to growth they don’t pay adequate attention to their inventory numbers. This