...evaluate ethical problems based on your understanding of ethical theories and prior research. • Apply the relevant ethical theories to business problems. • Analyse ethical issues in accountancy and provide advice. • Effectively communicate an ethical decision to a member of the profession. Assignment Select three of the recent corporate scandals listed below and prepare a report suitable for submission to a board of directors that discusses: a. the facts relating to each of the corporate scandals and how the scandal occurred. Identify any similarities between the three scandals. (3 marks); b. the stakeholders involved in the scandals with explanations of how they were affected by the scandal (4 marks); c. the ethical, legal, accounting and corporate governance issues involved in the scandal including how the issues were able to occur. Identify any similarities between the three scandals. (12 marks); d. a comparison between Enron and each of the recent corporate scandals you have selected, identifying any similarities or differences between the recent corporate scandal and Enron (5 marks); and e. Improvements and...
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...CORPORATE GOVERNANCE 1 CORPORATE GOVERNANCE We can attribute societies demand for improved corporate governance on the number of recent financial scandals that have occurred in both the United States and abroad in the past decade. For many organizations, the way to rebuild shareholder confidence was to implement a fundamental framework of procedures that would ensure scandals like Enron, WorldCom and Tyco would not occur in the future. It is precisely these scandals that made corporate governance the focus of organizations worldwide. Corporate governance is defined as the principles and processes that provide the strategies on how an organization directs and obtains its goals, the oversight process for implementing effective accountability from its directors and managers (Rittenberg, Johnstone, & Gramling, 2012). What are two of the principles that surround corporate governance? How do they tie into the recent legislation that was put into place to resolve ethical challenges and changes within the last decade? Two principles that surround corporate governance include “successful management and ethical corporate culture and independence and objectivity” (Creel, 2013). It is management’s responsibility to create a culture of “integrity and ethical behavior” (Rittenberg, Johnstone, & Gramling, 2012). In addition, it is imperative for board members to maintain their objectivity and their judgment must remain independent and in the best interest of its stakeholders. Corporate...
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...Congress in July 2002 has been described “as the most sweeping and significant change in securities law since the 1930's” (Parles, 2007). This act was largely in response to the highly publicized scandals of companies such as Enron and Worldcom. The “goal of SOX [is] to ensure the accuracy and reliability of financial information of companies trading on public markets” (Parles, 2007). While this act was written quickly in response to a crisis and is only 66 pages its effect on companies in the United States is lasting (10 YEARS AFTER, 2012). Some of the provisions of the Sabanes-Oxley Act include: certification by CEOs and CFOs of company financial reports, prohibition of any form of personal loans to executives...
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...Corporate governance and responsibility Spotlight C O R P O R AT E G O V E R N A N C E OECD principles Foundations of market integrity Bill Witherell, Head, OECD Directorate for Financial, Fiscal and Enterprise Affairs © Getty Images Good governance goes beyond common sense. It is a key part of the contract that underpins economic growth in a market economy and public faith in that system. The OECD Principles of Corporate Governance and Guidelines for Multinational Enterprises are two essential instruments for ensuring that this contract is honoured. T he recent spate of US corporate failures and breakdowns in truthful accounting has undermined people’s faith in financial reporting, corporate leadership, and the integrity of markets the world over. The fact that the wave of scandals has come hot on the heels of a collapse in the high-tech bubble has a sharp ironic flavour. Both events have their roots in the heady days of stock market exuberance, when anything was possible, from creating multibillion dollar companies with little more than an idea, an investment angel and a lot of faith, to believing that markets would buy any yarn a group of fast-talking executives could spin, even if to cover up serious losses and illegal practices. The corporate scandals and the bursting bubble have different causes though: on the one hand, illicit management decisions and cover-ups, and on the other, over-bloated investment assessments...
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...Academic Year: 2014/15 Module code: P13505, Level 3 Autumn Semester Module Outline: Auditing, Governance and Scandals (AGS) |Module Convenor |Dr. Kevin Dow, AB474 | |Lectures |Dr. Kevin Dow | | |TH 4:00-5:30, TB 329 | |Additional Staff |Cass Lai, AB247 | |E-mail addresses |kevin.dow@nottingham.edu.cn | | |cass.lai@nottingham.edu.cn | |Office Hours |Dr. Kevin Dow: Th, 2:00 pm - 4:00 pm, every Thursday until Exams (except December 11 and 25) | | |Cass Lai: Th, 2:00 pm - 4:00 pm | KEY POINTS • This is a Level 3, 10 credit module; • Assessment basis: a one and a half hour Examination (100%); • Keywords: Audit; Governance; Corporate Scandals; Audit Theory and Practice; Accountability; • Pre-requisite module: P12307 Financial Reporting. MODULE AIMS To use a mix of textual and...
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...Allan Castro 3/4/11 Accounting I Instructor: John Mcauliffe Write a three to four (3-4) page report that answers the following: 1. Analyze the new or enhanced standards for all U.S. public company boards, management, and public accounting firms that the SOX required. 2. Examine why the new enhanced standards are necessary. 3. Evaluate the benefits and costs of the SOX. 1. Analyze the new or enhanced standards for all U.S. public company boards, management, and public accounting firms that the SOX required. Corporate governance becoming increasingly subject to stakeholder scrutiny, compliance to and deployment of a set of financial management standards has become mandatory for the board of directors of most organizations. The Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or SarbOx; July 30, 2002) is a United States federal law passed in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, and WorldCom (now MCI). These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D–Md.) and Representative Michael G. Oxley (R–Oh.), the Act was approved by the House by a vote of 423-3 and by the Senate 99-0. The legislation is wide ranging and establishes new or enhanced...
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...paper is three-fold. First, it is to highlight corporate scandals that have happened in Malaysia. Second, it is to discuss some major causes of these corporate scandals; and third, it is to recommend the possible actions and preventive measures to curb these scandals. 1. Introduction In the recent years, the public and business community have been surprised with the exposure of many corporate scandals and accounting fraud by the managers of the company. It disappoints many stakeholders as after the financial crisis in 1997, many efforts have been initiated and implemented to strengthen the business control and foundation of the company. One of the important lessons learned from the financial crisis in 1997 is the weaknesses in the governance of the company such as too much power is given to a single person in managing the company, weak internal control and poor work of the directors that leads to the failure of the company. Due to this, a total regulatory and governance were embarked all over the world. Just to name a few, in the US, the Sarbanese Oxley Act was established, while in the UK the Code of Corporate Governance was extensively revised to stop all these corporate diseases from spreading and becoming a cancer for the global business community. However, all this effort has seemed fruitless as after the heavy debate and discussion and huge struggle by the regulator and market administrator, these corporate scandals are still returning but with more scaring facts...
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...Throughout this report I will evaluate the main elements of modern corporate governance structures and I will then focus and explain each of these and how they lead to good governance and how management accounting has a role in supporting them. Over time the meaning of corporate governance has been debated and discussed by economists not only in managerial economics but also in many other areas. In 1992, Adrian Cadbury described corporate governance as the “system in which companies are directed and controlled” (Cadbury,1992). But many other economists have completely different views and depictions of the term corporate governance. Cadburys statement above is only one sentence on corporate governance which other economists could write a thousand...
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...Audit: The Relationship between Japanese Corporate Governance and Toshiba’s Accounting Scandal Ryan Shane West Chester University MGT 313-08 Dr. Fisher March 15th, 2016 Table of Contents Introduction……………………………………………………………………………...……………………………………………………………3 CSR Analysis…………………………………..…………………….…………………………………………………………………………………4 Stakeholder Analysis………………..………….…………………………………………………………………………………………………5 Consumer Analysis…………………….…………………………………………………………………………......................5 Shareholder Analysis……………...…………………………………………………………………………………………………6 Employee Analysis…………………….……………………………………………………………………………………………...7 Executive Management Analysis……………..………………………………………………………………………………..7 Role of Government, Business & Society...…………….………………………………………………………………………………8 Role of Government……………….….……………………………………………………………………………………………..9 Role of Business………………….………………………………………………………………………………………..…………..9 Role of Society…………………….……...………………………………………………………………………………………….10 Conclusion…………………………………………………………………………………………………………………………………………….11 References……………………………………….……………………………………………………………………………………………………13 Toshiba Inc. is a Japanese multinational conglomerate that is considered one of the world’s leaders in information technology (Toshiba). In July of 2015, CEO Hisao Tanaka stepped down in light of the findings that Toshiba had been overstating its earnings for the past seven years by over $1.2 billion USD (Investopedia 2015). This scandal began in 2008 after the financial crisis and...
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...Abstract It is fairly easy for a top executive to reduce the price of his or her company's stock. Due to information asymmetry. The executive can accelerate accounting of expected expenses, delay accounting of expected revenue, engage in off balance sheet transactions to make the company's profitability appear temporarily poorer, or simply promote and report severely conservative estimates of future earnings. And this phenomenon of accounting scandal exist in contemporary society. The integrity of the accounting profession and the credibility of financial information provided by businesses have been undermined by scandals. Accounting and business education should pay more attention to the ethical to prevent accounting scandals. And they should not be focused on the teaching of accounting techniques. Neoliberal ideology is a political movement beginning in the 1960s that blends traditional liberal concerns for social justice with an emphasis on economic growth. And it is similar to globalization. Globalization includes three elements that are difficult decreasing, quick response to alterations, and multilateral trade liberalization. And accounting professional contains individual professional judgment and professional self-regulation. Globalisation brings many benefits but also a number of problems, for instance, low price labour used by multinationals that Increasing wages for highly-skilled workers and reducing wages for less-skilled workers obviously leads to greater inequality...
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...Sarbanes-Oxley Act Accounting I – ACC100 Instructor – Date Analyze the new or enhanced standards for all U.S. public boards, management, and public accounting firms that the SOX required. The Sarbanes-Oxley Act has a new standard for all U.S. public company boards, management, and public accounting firms that the SOX required. The Act sponsored by US Senator Paul Sarbanes and US Representative Michael Oxley has regulated all business records, memoranda, accountants’ audit or review documents, as well as correspondence, including electronic records and e-mails, must be maintained for a minimum of five years after the fiscal period in which they were generated. The Sox Act also ensures the CEO and CFO(chief financial officer) has to certify the correctness of the financial statements and disclosures controlled in the annual report. The CEO and CFO will be personally responsible for any violations. The Sox Act affected more than finances with in a corporation. It was established to define which records in the IT department should be stored and for how long. The Act contains 11 titles or sections which describe the rules that are required to comply with the new law. As far as conformity is concerned the most pertinent sections of the Act is 302, 401, 404, 409, 802 and 906. The Securities and Exchange Commission(SEC) is also responsible for protecting investors, maintain fair, orderly, and...
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...from the past 20 years with current corporate scandals. Details This is a group assignment of three students, you need to form your own group and register yourself in a group on the RMIT Blackboard by the end of topic 3. A detailed marking rubric is provided. Word limit: 3,500 words (not including references, bibliography). Make sure that you attach a signed cover sheet and the originality report from Turnitin to your assignment together with your group member names, your lecturer's name and tutorial time clearly written. Only one report per group is to be submitted. Assignment- Part One Due date: Friday TBA 2014 at 5.00pm. Marks available: 20 marks Select three corporate scandals listed below and prepare a report suitable for submission to a board of directors that discusses: a. the facts relating to the corporate scandal and how the scandal occurred. Identify any similarities between the three scandals (3 marks); b. the stakeholders involved in the scandal with explanations of how they were affected by the scandal (3 marks); c. the ethical, legal, accounting and/or corporate governance issues involved in the scandal including how the issues were able to occur. Identify any similarities between the three scandals (6 marks); d. a comparison between Enron and each of the corporate scandals you have selected, identifying any similarities or differences between the corporate scandals and Enron (8 marks); and ...
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...Corporate Ownership & Control / Volume 2, Issue 2, Winter 2005 РАЗДЕЛ 3 УГОЛОК ПРАКТИКА SECTION 3 PRACTITIONER'S CORNER INVESTORS TRUST AFTER PARMALAT SCANDAL: THE ROLE OF CORPORATE GOVERNANCE Giovanni D’Orio Giovanni D’Orio, Department of Economics and Statistics, University of Calabria – Rende (CS) Italy. Contact: gio.dorio@unical.it 1.1. Introduction The collapse of the Parmalat food empire reveals a troubling aspect about Italian capitalism - the lack of effective financial control over its family-owned companies. But was Parmalat scandal a pure problem of corporate governance or was it simply a “fraud”? Bearle and Means (1932 pg. 6) famously explained: “The separation of ownership from control produces a condition where the interests of owner and of ultimate manager may, and often do, diverge ....”. Is this the case? Were the people who invested in bonds and shares of Parmalat savers, investors or what? Which was the role played in the story by Auditors, CONSOB and Bank of Italy? This paper analyse the current situation of the Italian corporate governance and saving system in a critical view trying to find an explanation to the previous questions. 1.2. Corporate Governance and the legislative decree 19/01/03nr. 6: the alternatives The Italian system of corporate governance does not fit in either of the categories of the well-known distinction between bank-based and stock exchange 102 based systems. Instead, it can be ranked among the ...
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...Lessons from the Enron Scandal On March 5, 2002, Kirk Hanson, executive director of the Markkula Center for Applied Ethics, was interviewed about Enron by Atsushi Nakayama, a reporter for the Japanese newspaper Nikkei. Their Q & A appears below: Nakayama: What do you think are the most important lessons to be learned from the Enron scandal? Hanson: The Enron scandal is the most significant corporate collapse in the United States since the failure of many savings and loan banks during the 1980s. This scandal demonstrates the need for significant reforms in accounting and corporate governance in the United States, as well as for a close look at the ethical quality of the culture of business generally and of business corporations in the United States. N: Why did this happen? H: There are many causes of the Enron collapse. Among them are the conflict of interest between the two roles played by Arthur Andersen, as auditor but also as consultant to Enron; the lack of attention shown by members of the Enron board of directors to the off-books financial entities with which Enron did business; and the lack of truthfulness by management about the health of the company and its business operations. In some ways, the culture of Enron was the primary cause of the collapse. The senior executives believed Enron had to be the best at everything it did and that they had to protect their reputations and their compensation as the most successful executives in the U.S. When some of their...
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...Jashldkahsdkhalksdlakjsldkjasjdlkajlskdjlkajksjdlkajsd Asdj;ajsdkjakjsdkjaksjdkajskdjajsldkja jkajsldkjalkjsldkjlakjsdlkjalkjsdkakjsdkajlksjdlkajlskdx Collins, Ellen I have attained two undergraduate degrees in European studies and law and a Masters degree in trade, corporate governance and European law; in highly recognisable UK universities. Currently I am undertaking a full time Masters degree in Business law in one of the best UK and world universities. I am an experienced researcher and I have worked on different research projects demanding law elements from UK and other jurisdictions. In addition I have more than a year's legal work experience providing the law firm's clients with high quality legal research documents. I have an eye for perfection. It will be a pleasure to work for you. Sample Do the UK Combined Code on Corporate Governance and the legislative framework regulating Listed PLC's in the UK effectively address the problems revealed by the corporate scandals of recent times? Introduction> In UK there are the sole trader, the partnerships, the companies and the joint venture, structure businesses. For the sole trader and the partnerships because the businesses are controlled by the owners and they work for the benefit of the owners, it has not been necessary to have increased measures for the protection of the owners benefit. In the companies though that it is a different legal entity, not related to the persons that initially established it, there is...
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