Enron: a Fraud Example What Were the Failures That Allowed

question 19

Essay

Enron: A Fraud Example What were the failures that allowed the Enron fraud to occur?

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Definitions:

Output Controls

Mechanisms put in place to measure the results of operations or performance to ensure that goals and objectives are met.

Managing by Exception

A management strategy where leaders only intervene in operations when performance metrics fall outside of pre-set acceptable ranges.

Organization Charts

Visual diagrams that depict the internal structure of an organization, including the relationships and relative ranks of its parts and positions.

Chain of Command

A system that establishes authority and accountability in an organization by assigning each member a specific rank and a clear line of superiors and subordinates.