TANNAGAN, CRISTEL LORANE D.

BS ACCOUNTANCY 4A
OPERATIONS AUDITING

III. Recommendations (ENRON SCANDAL)

1. STRENGTHENING BOARD OVERSIGHT

- The board should regularly monitor the duties
and responsibilities of their elected officers by
checking it against theirs set goals.

 Monitoring Activities
 Formulate goals and objectives (SMART)
 Instilling ethical discipline throughout the business
organization.

2. TEAMWORK
- The company should work hard hand in hand in
all operations and should instill that the decisions
they make is for the benefit of everyone and not
for their personal interest.

 Learn how to separate personal interest from

shareholders’ interest.
 Communicate key issues and concerns throughout the
organization.

3. PROPER DELEGATION OF DUTIES

- Create a clear line of authority and proper
delegation of responsibilities.
  Each function or position must be given to employees
who possess sufficient knowledge and skills regarding
the nature of area assigned.
 Do not give two or more incompatible duties to one
employee.
 The human resource department should conduct a
thorough background checking of applicants.

4. FOCUS ON THEIR CORE BUSINESS ACTIVITIES

- The company should mainly focus on activities
that they do best and have an adequate
information before venturing out to other
activities.

 Outspir