1. Numerous accounting scandals around the world have highlighted the importance of ethics and ethical behavior in the corporate world and for this purpose, the Code of Ethics and Attribute Standards were shaped. Since the IIA Code of Ethics and Attribute Standards are very closely interrelated, they both describe the principle of objectivity as a responsibility on all professional accountants, no matter what the circumstances are, should not compromise their professional or business judgment because of bias, conflict of interest or the influence of others. In other words individual will take the decision based on the facts present at the moment without being influenced by their feelings, emotions, relationships with others, bribes, or any
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These four‐steps of risk management process should be implemented at all levels of the enterprise. This is particularly important for the companies with multiple operating units engaged in different business operations in various countries as risks in one unit may directly impact or be related to risks in another. These risks can occur due to different circumstances ranging from poor financial decisions, to changes in consumer tastes to new government regulations.
Risk Identification: It is the stepping-stone in the risk managing process. There is always a necessity to identify and understand the various risks facing a company. It is the management’s responsibility to identify all possible risks that may impact the success of the enterprise. The risk identification process requires a deliberate approach to looking at potential risks in each area of operations and then identifying the more significant risk areas that may impact each operation in a reasonable time period. It is important to assess those risks in terms of their cost, effect and possibility then, develop responses in the event of a risk occurrence, and finally develop documentation procedures to describe what happened as well as what corrective actions need to be …show more content…
The fallacy of perfection is when one does not confess his mistake instead thinks that everything is perfect. It 's like tempting to try to appear perfect, but the costs of such deception are very high. Although such a standard of perfection can serve as a goal and a source of inspiration, but it’s totally unrealistic to expect that you can reach or maintain this level of behavior. Organizations who try to set their tone in their initial state fail to accept changes would see success for period of time but eventually collapse to the beliefs that anything and everything can be controlled with their perfect set of measures. They ignore the fact the companies and especially CEO’s need to be aware of how their business is situated in the market and what their customers truly think about their
These four‐steps of risk management process should be implemented at all levels of the enterprise. This is particularly important for the companies with multiple operating units engaged in different business operations in various countries as risks in one unit may directly impact or be related to risks in another. These risks can occur due to different circumstances ranging from poor financial decisions, to changes in consumer tastes to new government regulations.
Risk Identification: It is the stepping-stone in the risk managing process. There is always a necessity to identify and understand the various risks facing a company. It is the management’s responsibility to identify all possible risks that may impact the success of the enterprise. The risk identification process requires a deliberate approach to looking at potential risks in each area of operations and then identifying the more significant risk areas that may impact each operation in a reasonable time period. It is important to assess those risks in terms of their cost, effect and possibility then, develop responses in the event of a risk occurrence, and finally develop documentation procedures to describe what happened as well as what corrective actions need to be …show more content…
The fallacy of perfection is when one does not confess his mistake instead thinks that everything is perfect. It 's like tempting to try to appear perfect, but the costs of such deception are very high. Although such a standard of perfection can serve as a goal and a source of inspiration, but it’s totally unrealistic to expect that you can reach or maintain this level of behavior. Organizations who try to set their tone in their initial state fail to accept changes would see success for period of time but eventually collapse to the beliefs that anything and everything can be controlled with their perfect set of measures. They ignore the fact the companies and especially CEO’s need to be aware of how their business is situated in the market and what their customers truly think about their