...КУРСОВА РАБОТА ЕНРОН 1. Групирайте причините за фалита на Енрон по подходящ начин 1.1. Амбицията и алчността на главните мениджъри и разширяване на дейността на компанията, която не може да си позволи от финансова гледна точка компанията се превръща в глобален топ доставчик в бизнеса с електроенергия, стомана и дървесина конгломератът купува телевизионно рекламно време и извършва застраховки срещу кредитни неустойки компанията, следвайки глобалната и виртуалната стратегия, увеличава мащабите на своята дейност и изгражда нови обекти в Индия, Китай, Индонезия, Филипините, Аржентина, Бразилия, Боливия. Тези проекти струват много средства, които компанията си набавя чрез големи заеми. Кредитите рязко увеличават пасива на баланса и намаляват рентабилността на компанията, което крие риск от срив на ценните книжа на фондовата борса 1.2. Машинациите на финансовия мениджър за да прикрие смущенията във финансите, ръководството одобрява финансовата стратегия на Фастоу за разкриване на множество фиктивни дружества партньори чрез подставени лица дружествата изкупуват придобитите на кредит инвестиционни проекти на корпорацията и ги заплащат чрез реални пари, набавени чрез заеми по същество на дружествата се прехвърлят натрупаните огромни задължения на Енрон компанията отчита в баланса си приходи от сумите, постъпили от фиктивните дружества, а не отчита допълнителното увеличаване на разходите в резултат се отбелязва невероятен ръст на пазарната капитализация...
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...the most if not the only solid argument. Its duty as an autonomous entity to reduce the information asymmetry so that the engines of our financial markets run efficiently and free from the flaws of the capitalist system. The role it plays as a fail-safe to prevent the house form crumbling down is as good a reason as it gets. But in this case it would seem as though, despite its best efforts auditing, ironically has itself been pulled into the very house it was meant to watch over. This shouldn’t come as a surprise because let us not forget auditors are also subject to the philosophies of capitalism despite being its nanny. This failure of the checks and balances meant to keep capitalism on a leash lead to synergistic corruption which saw Arthur Anderson take away $1 million a week in billable revenue in 2001. At a time when they should have said No they took their share and walked away without a second thought. The auditors who were supposed to prevent this from happening became part the reason it happened. If there if one thing that Enron has taught us, it is to ask...
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...Memo of law Question/Issue Presented What evidence can be found during a legal discovery and how does this affect the record-keeping policy of a business organization? Applicable Law and Ethical Standards Newby v. Enron Corp. , 2002 U.S. Dist. LEXIS 28397 (S.D. Tex. May 1, 2002) Newby v. Enron Corp. (In re Enron Cor... , 2003 U.S. Dist. LEXIS 1668, Fed. Sec. L. Rep. (CCH) P92404 (S.D. Tex. Jan. 28, 2003) United States v. Arthur Andersen LLP , 2002 U.S. Dist. LEXIS 26870 (S.D. Tex. May 24, 2002) 18 USCS § 1512 Discussion/Analysis (of Law and Facts) During a legal discovery which includes the procedures of Deposition, Interrogatories and Production of Documents there can be different evidence found depending on the area of work the business organization is involved in. An example could be that a company tried to create false documents with the intent to seem like a good investment or to avoid paying taxes. During a deposition evidence can be found that people questioned tell conflicting stories. It is crucial to be able to deliver the right documents requested during a discovery. Therefore, it is important to have an organized record-keeping policy for any organization. Furthermore, a business should keep its records as correct as possible and not be tempted to give in to fraud, changing documents or destroying important documents. A company should follow the law to keep the required documents. It would be a crime to hide, destroy and/or withhold subpoenaed...
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...Arthur Miller was born in Harlem, New York on October 17th, 1915. He was raised in a moderate household, but lost everything during the Wall Street Crash in 1929. After the crash, he and his family moved to Brooklyn. Arthur worked through his troubles so that he could attend college at the University of Michigan. In college he wrote for the student paper and was in the play called, No Villain. Miller was inspired by one of his professors named, Kenneth Rowe. He was inspired by his approach of playwriting, and wanted to begin his career. He wrote the play, The Man Who Had All The Luck. This play closed after only four performances into the season because of terrible reviews, but six years later, he wrote the play All My Sons, which was a tremendous achievement for him, and achieved the tony award for it. He had many other achievements as well. He wrote the story “Death of A Salesmen,” in less than one day, and was loved by so many people in the theatre. This play won many different awards. Miller married Marilyn Monroe, who starred in the screenplay called “The Misfits,” After leaving his first wife, Mary Slattery. However, in 1961 miller and Monroe were divorced. Lastly he married another woman who was a photographer from Austria. Her name was Inges Morath. They had two children together named Rebecca and Daniel. Daniel had Down syndrome. Miller wanted nothing to do with his son, and asked that he be excluded from the family’s personal life. One of the main stories that...
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...Enron Corporation was a company that provided services which related to energys, commodities and services based in Houston Texas. Enron employed approximately 22,000 staff. It was one of the world's leading electricity, natural gas, communications, pulp, and paper companies. Enron claimed revenues of nearly $101 billion in 2000 before it filed bankruptcy in late 2001. Enron was named "America's Most Innovative Company" for six years in a row by Fortune. In 2001, Enron was accused of accounting fraud which later was recognized as the "Enron Scandal" and forced to file bankruptcy. The scandal led attention to other corporation's practices and activities from this result. The creation of the Sarbanes-Oaxely Act of 2002 was influenced by the Enron scandal as well. Enron's roots go back to a company that was formed in 1932 known as the "Northern Natural Gas Company". The company was reorganized in 1979 as leading subsidiary of a holding company known as InterNorth Inc. The company was a leader in natural gas, transmissions, and marketing. It was also a provider of natural gas liquids as well as an innovator in the plastic industry. InterNorth owned "Peak Antifreeze" as well as developing "EVAL" resins for food packaging. The Enron Corporation led itself into scandel, fraud, lies, and illegal financial cover-ups that would later be known as one of the biggest corporation scandels in history. 1. Discuss how Enron could have been structured differently to avoid such activities...
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...Power of Success The unflinching conflict of obtaining success is eloquently portrayed throughout Arthur Millers “Death of a Salesman”. In this modern tragedy, Miller successfully depicts the human condition in midst of denying failure. The play unfolds around a washed- up salesman named Willy Loman, whose obsession with reaching concrete evidence of success, creates unfortunate repercussions on his family, and himself. Willys conviction that a man must not only be like, but he must be well liked (Miller, 1250), along with his uninterrupted focus on prominence, reflects on his two sons, Biff and Happy, as he infuses them with values of social status as well as future success. Willy’s sense of self value depends on the response of others. Such gestures of recognition provide signals that society is a comfortable home for him, one where he hopes to make his sons as happily at ease as he (Jacobson, 249). This is doubtlessly a mirage of security for Willy, as he desperately suppresses his inner motions of regret, and refuses to embrace his conscious identity. Ultimately, Willy Lomans self- delusion of success disabled him to obtain his true identity, and influence a displacement of identity in his sons. Most people in today’s society develop a constant necessity to better their lives, as well the quality of life for their family. For many, this necessity stems from their core beliefs of what a comfortable life should contain in our society, along with secure elements for their...
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...Arthur Andersen: Questionable Accounting Practices Steven Young Strayer University Business Ethics: Ethical Decision Making and Cases Dr. Mary Tranquillo November 13, 2012 Arthur Andersen: Questionable Accounting Practices p1 Arthur Andersen, one of the largest accounting firms in the United States, “a name that was synonymous with trust, integrity, and ethics” (Ferrell, Fraedrich, & Ferrell, 2011, p. 348), through a loss of its founder Arthur Andersen, and change in its corporate culture resulting in many unethical business transactions that affected multitudes of primary stakeholders had to close its doors in 2002 after 90 years of business. Review the mandated requirements for legal compliance (from chapter 4) and determine which requirements apply to the Arthur Andersen case. Explain your rationale After re-reading Chapter 4 there are five areas that separate the mandated requirements for legal compliance, and I feel the that two apply to the Arthur Andersen case; the protection of consumers, and incentives to encourage organizational compliance programs. In the laws that protect consumers they require businesses to provide accurate information protecting them from financial scams, unfair, fraudulent, or deceptive practices. There are “Gatekeepers” that are in charge of that such as lawyers, financial rating agencies, and financial reporting services that help enforce high ethical standards. This...
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...Death of a salesman Death of a salesman shows the American dream from a good point of view. It shows it from a family and how there’s nothing can stop you from becoming what you want to be and do what you what you do as long as you set your mind to it. America is country founded by free people who travelled from countries whit classes, to start not just a country but also a place where people are their own fortune. They don’t grow op whit the mindset that you are in the class your put in like the most of Europe does, they grow up believing in themselves and their values. It might sound as if it’s only happy days, but as Arthur Miller shows through Willy Loman, that if you don’t have the right means for it, your more likely to fail than succeed. Like Willy Loman, many almost got brainwashed by overprotecting parents into believing that it will happen at some point, and they won’t let go of that thought, until they eventually end up whit nothing, and only realizes that’s it isn’t going to happen, when it’s to late. But I’m not saying that it’s the same for everybody, if you take Biff Loman for an example. He go’s through of crisis of self-knowledge, because he realizes that the American dream is a booster, and it’s not for everyone. He uses a long time to figure out who he is and what he want’s to do with his life, and he eventually does, and you can see the brainwash because Willy have filled him with hot air all this time, and it takes a drastic change for him to realize...
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...do anything in his life and became nobody. Willy is another example; he expected good expected good things to come in life without effort. He expected his children to become successful so they could support him, but instead they became bums. The stress of not being able to pay bills and the failure of his children was so unbearable that he became absorbed in the past. Often oblivious to what was going on around him. Willy also became suicidal, constantly crashing his car and he also had a short rubber pipe that connected to the gas pipe on the water heater. From the given examples I believe that Miller did “speak” to the people by showing that things in life don’t always go as expected and you must work hard to achieve success. Arthur Miller maintained that Death of a Salesman was a tragedy. Although Death of a Salesman was serious, about a...
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.... The traits essential for a consulting organization – innovative, creative, dynamic, strategic. 2. On August 7, 200 Andersen Consulting has officially separated from Arthur Andersen. In return for its independence, Andersen Consulting had to change its name as the Andersen Consulting name was to expire December 31, 2000 the company had begun to search for a new name in advance of the arbitration decision. It was very complicated because the company had to quickly create a new name, effectively transfer equity of the old name to the new name, raise awareness of the new name globally, decisively eliminate confusion between itself and Arthur Andersen and reposition the firm in the marketplace to reflect its new vision and strategy 3. “Renamed. Redefined. Reborn. 01.01.01”; “Greater-than”; “Now it gets interesting”; “ Innovation, delivered”; ”High performance. Delivered” 4. Andersen Consulting has made a research focusing on five factor: 1 marketplace awareness was the measure of brand awareness in each of the major countries across brand attributes; 2 client satisfactions was used to measure Company’s performance with its global client base; 3 buyer values was the measure of the key values oft its global target audience to understand and stay ahead of market trends; 4 advertising copy testing was the pre and post testing measuring the effectiveness of all print, poster and television advertising concepts; 5 media monitoring was the measure of the number and type of...
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...Ethics Case: Arthur Andersen’s Troubles Once the largest professional services firm in the world, and arguably the most respected, Arthur Andersen LLP (AA) has disappeared. The Big 5 accounting firms are now the Big 4. Why did this happen? How did it happen? What are the lessons to be learned? Arthur Andersen, a twenty-eight-year-old Northwestern University accounting professor, co-founded the firm in 1913. Tales of his integrity are legendary, and the culture of the firm was very much in his image. For example, “Just months after [Andersen] set up shop in Chicago, the president of a local railroad insisted that he approve a transaction that would have inflated earnings. Andersen told the executive there was “not enough money in the City of Chicago” to make him do it.”1 In 1954, consulting services began with the installation of the first mainframe computer at General Electric to automate its payroll systems. By 1978, AA became the largest professional services firm in the world with revenues of $546 million, and by 1984 consulting brought in more profit than auditing. In 1989, the consulting operation, wanting more control and a larger share of profit, became a separate part of a Swiss partnership from the audit operation. In 2000, following an arbitrator’s ruling that a break fee of $1 billion be paid, Andersen Consulting split completely and changed its name to Accenture. AA, the audit practice, continued to offer a limited set of related services, such as tax advice.2 Changing...
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...company's financial reporting segment offers an IFRS/GAAP comparison so companies can compare and contrast the international and US accounting standards. The group's members firms are organized in four geographic areas: Europe, the Middle East, India, and Africa; the Americas (including Ernst & Young LLP); Japan; and the Asia/Pacific region. Ernst & Young is increasingly focused on the emerging markets, which have seen more rapid economic recovery than the developed nations. The company sees the trend of growth in the emerging markets as one that will continue for decades to come, and is investing in those markets as such. INTROCDUCTION Name and Branding The firm's name arises from the global merger between Ernst & Whinney and Arthur Young in 1989. The motto of the firm is "Building a better working world". The new brand name of EY made headlines when it was realized that EY was also the name of racy magazine, EY!...
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...Britain, 1906-1914 The reasons for the ‘Liberal landslide’ in 1906 Debate: The 1906 general election has encouraged debate about whether the result was due primarily to Conservative weaknesses or to Liberal strengths. The Boer War: 1. It was far more costly in lives and money than had been expected and some of the methods used to defeat the Boers caused moral outcry in Britain. 2. It had revealed the effect of poverty in the cities, reflected in the findings by Booth and Rowntree that 10% of people in major cities lived below the poverty line. 3. It revealed the low national efficiency at that time and the need for social reforms. The Liberals had also gained support by claiming that the Conservatives had neglected this. 4. The war also had the effect of encouraging Joseph Chamberlain to push his campaign for tariff reform, which was argued as the Conservatives’ biggest policy misjudgement. The 1902 Education Act: 1. It provided for all schools to be funded from local rates. It was an unpopular reform with many amongst the electorate. 2. It had also helped to reunite the Liberal Party after the Boer War and restore Nonconformist support for the Liberals. A campaign was launched against the act led by the Liberal MP David Lloyd George. The 1904 Licensing Act: 1. Another issue annoyed nonconformist voters. Nonconformists denounced the 1904 Act as a ‘brewers’ bill’. The Chinese labour issue between 1902 and 1904: 1. It annoyed...
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...The main issue of this case is basically Enron Corporation poor business decisions and lack of internal control that led to the bankruptcy of this company. Was Arthur Anderson & Co deprived internal audit system, audit reports and financial advisement what that led to the collapse of this company? Other issues further explains that Enron had also abused the market-to- market accounting method for its long term contracts involving in various energy commodities, primarily natural gas and electricity. The intense use of special purpose entities (SPEs) by Enron allowed them to avoid debts wish further explained their financial inaccuracy. In fact SPEs provided large companies with a mechanism to raise needed financing for various purposes without being required to report debt in their balance sheets. Enron had created hundreds of these SPEs. A main factor that motivated Enron executive to window dress their company’s financial statement was the need for this company to sustain stock prices at a high level. The bonds were created but as a loan. This was used for capital investments and just to borrow money. This was hidden as it treated cash as revenues. Since they didn’t have to consolidate as it was off the book and balance sheets. This became an abuse to the SPEs rules. Arthur E. Anderson relied on a simple four word motto to serve as a guideline principle in making important personal and professional decisions “Think straight, talk straight”, so how can a company with such...
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...Distrust During the first few years of the twenty first century, and in the wake of the terrorist attacks of 9/11, the business world was rocked with news of financial and accounting scandals at major Fortune 500 companies. Enron, a Texas based energy company, lied about profits and was accused of concealing debts so they did not show up in the company’s accounts (BBC News, 8/22/2002). Arthur Andersen, an accounting giant, member of the “Big Six”, and Enron’s corporate auditor, collapsed completely after being found guilty of deliberately destroying evidence of its relationship with Enron (BBC News, 8/22/2002). Tyco executives L. Dennis Kowlowski and Mark H. Swartz were indicted and charged with misappropriating more than 170 million dollars from the company as well as outright stealing 430 million additional dollars through sale of fraudulent shares of Tyco stock (Daniels Funds Ethics Initiative). MCI Worldcom was found guilty of accounting fraud in relation to an overstatement of earnings in 2001 and 2002 (CSR Report for Congress, 8/29/2002), during which time its own auditor was also Arthur Andersen. Executives at each firm (Kenneth Lay, Bernard Ebbers, Dennis Kozlowski, and Mark H. Swartz amongst others) served jail time for their role in these scandals, which severely eroded the public’s trust in the corporate sector. Tyco’s stock plunged from $60.00 to $18.00 in the wake of the scandal, and many employee stockholders saw their savings dissolve (Daniels Fund Ethics...
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