las irregularidades en la contabilidad de la compañía eran despedidas para poder continuar con la farsa “tranquilamente”. La compañía realmente estaba en la quiebra y logró ocultarlo manipulando la información con ayuda de la firma auditora Arthur Andersen, encargada de la contabilidad de Enron, que luego admitió haber destruido documentos y como si fuera poco, se conoció que Dick Cheney, vicepresidente de Estados Unidos, y su gente también fueron complices y estaban al tanto del fraude. Los altos
Words: 631 - Pages: 3
markets. The accounting maneuver responsible for the overstatement – classifying payments for using other companies’ communications networks as capital expenditures – was characterized by the press as scandalous, and it was immediately asked why Arthur Andersen, the company’s outside auditor at the time, had not detected it. WorldCom filed for bankruptcy protection on July 21st. On August 8th, the company announced that it had also manipulated its reserve accounts in recent years, affecting an additional
Words: 2603 - Pages: 11
Sarbanes-Oxley Act of 2002 SE584: Forensic and Business Investigations Techniques February 22, 2009 The passage of the Sarbanes-Oxley Act of 2002 (SOX) changed how accounting is practiced and how corporations handle their accounting departments, to include auditing and internal controls. Some of these changes are for better accountability and some are for governing the application of stricter rules. The accounting profession was dramatically affected by the events leading up to and after
Words: 3558 - Pages: 15
Waste Management Scandal Janice Whitted Strayer University Professor Steven Brydges October 29, 2012 According to your dictionary (2012), ethics in is the moral standards of determining the behavior of others and assume that “do unto other as you will have them do unto you”. In business, you have to consider the consumers, clients, and shareholders. Because these people has such a significant factor in your business dilemma arises among the different interest it can become extremely tricky
Words: 925 - Pages: 4
suggests that Andersen did not fulfill its professional responsibilities in connection with its audits of Enron’s financial statements, or its obligation to bring to the attention of Enron’s Board (or the Audit and Compliance Committee) concerns about Enron’s internal contracts over the related-party transactions".[4] On June 15, 2002, Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron, resulting in the Enron scandal. Nancy Temple (Andersen Legal Dept
Words: 304 - Pages: 2
Unethical Practices of Arthur Andersen 1.) I think that Arthur Andersen contributed a lot to the Enron Disaster. I think that it all started when AA became its own company. Because of this, the two companies became rivals. AA’s main focus was on revenues. The company did not care how things were done as long as it put money in their pockets. Also, from what I understand, the company made the auditors feel that if they were to say anything that would make the company lose a client, then the auditor
Words: 449 - Pages: 2
Does the accounting profession deserve its reputation? Why or why not? At the time Stephen Zeff wrote this article, the accounting profession deserved it reputation it had developed. From it humble begins in the early 19th century, to 2003 when this article was published, the accounting profession’s reputation became tarnished. At the time the Securities Act of 1933 and the Securities Exchange Act of 1934 were passed the intent was to create accounting standards for publicly traded companies. However
Words: 445 - Pages: 2
thousands lost their jobs and pensions. Another company involved in the scandal was Arthur Andersen, an accounting firm; Enron was their client. Arthur Andersen continued to perform bad audits even after a warning from SEC. If Arthur Andersen employees had been ethical, after the warning, the Enron Scandal would not have had led to the conviction and dissolution of the Arthur Andersen accounting firm. Arthur E. Andersen was born in a small town in Illinois and by the age of 16, he was an orphan. He was
Words: 278 - Pages: 2
Waste Management Scandal BUS 320 Finance 1/8/16 Waste Management Waste Management Incorporated is considered the nation's largest waste collector (Feder). Waste Management is a well known brand and dominates regions of the United States and Canada where they provide services. Anyone who sees their trucks tends to think, "Garbage". During the early 1990's, instead of just picking up the garbage, Waste Management provided garbage to their investors in the form of an accounting scandal. This
Words: 883 - Pages: 4
fall of Arthur Andersen Arthur Andersen Arthur Andersen was born in Plano, Illinois in 1885. He graduated the University of Illinois in 1908 with a degree in accounting. At the age of 23, he was the youngest Certified Public Accountant in the state of Illinois. From 1907 to 1911 he served as the Senior Consultant for Price Waterhouse in Chicago. In 1913, Andersen decided to establish his own accounting firm. At the age of 28, he founded the public accounting firm of Andersen, DeLany & Company
Words: 963 - Pages: 4
