Synopsis:
Hiring for Mr. Arthur Andersen is real a big mistake to the company due to his misconduct about preparing financial statements.
Mr. Keneth lay as the head did not check all the papers he was signing due to its trust to Mr. Anderson. And because of that, the latter got that opportunity to falcificate documents and other malicious work with the financial statements.
Due to their increasing dept., company even hides the true result of financial statements to portray it was favorable. They’re transparency in preparing is not acted. They have thought they can resolve their financial problem.
Due to the undetailed inquiries of Mr. Lay about it account assistant, it lead to company bankruptcy.

Recommendations: Own Opinion and suggestions. 1. Being the Head of a certain company it’s his duty to check and monitor the work of each employee not most of the time. 2. Mr. Lay shouldn’t be focus on one problem but try to be flexible in other so that monitoring if more effective. 3. An accountant must always have that kind of ethics and principles of doing his work not only for his benefit but to the client. 4. Trying to hide the problem from the constituents is more risky that to ask them the solutions of every problem specially in minimizing the operating expense without affecting the operation much. 5. Hiring employee must be well supervised specially for the accounting department. 6. Head must also monitor the activity of the business in the market. 7. Managing strategy is not well planned and there is no firm and strong foundation of its vision for the company. 8. Directors did not help when they got there share to the company in full well in fact there are already deficit in the company which leads to severe problem in the company. 9. Anderson ignoring the risk accounting issues is real a big problem for the company to resolve its