96-107 o WorldCom: The Final Catalyst on pp. 114-118 • Answer the following questions using complete sentences: o Enron: 1, 3, 5, 6, and 9 on pp. 106-107 o WorldCom: 1, 3, 4, and 5 on p. 118 • Post your answers as an attachment. Clearly label the case and question number for each of your responses. Enron questions 1, 3, 5, 6, and 9 1. Which segment of its operations got Enron into difficulties? The first thing that got them into trouble was the fact that Kopper was appointed to Fastow
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Enron was not only Andersen’s only crisis. The claim of Arthur Andersen that their problems on Enron audit were due to a few “bad partners” in the organization is not correct. We focused on the culture problem of firms a. Arthur Andersen The problems occurred because of its organization and corporate culture. The company decided to focus on generating new business and reducing costs. The atmosphere of Arthur Andersen changed when the company began evaluate its partners on how much new
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Arthur Anderson 1. Environment, strategic, organizational changes * High quality accounting, promoting integrity and sound audit opinions over short run profits * 1930’s- government adopted laws that require public companies to submit financial statements to independent auditor each year * mantra- good service, quality audits, well managed staff, profits for firm * auditors rewarded for making sound auditing decisions * decision rights to Professional Standards Group *
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Ross Jenkins Groupon Scandal 2:30 Pavlo, Walter. "Groupon Accounting Scandal, and We're Surprised?" Forbes. Forbes Magazine, 03 Apr. 2012. Web. 03 Feb. 2013. Groupon went public for the first time on November 4, 2011 and was a big hit. They quickly surged from $20/share to $31/share. It was not more than 4 months until an accounting scandal arose with much controversy. After this first day boom, investors have lost more than $9 billion in stocks. The original backers of Groupon tried to hide
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Using Teams in Production and Operations Management: Forensic Accountants: Fraud Busters. By: For: Class: Bus 508: Contemporary Business Date: 13 November 2012 Abstract: A case study for the Strayer University, Woodbridge, VA, Business 508 class, this paper provides for a brief review of 1) The skills that a forensic accountant requires; 2) The role of the forensic accountant in the courtroom; 3) The legal responsibilities of the forensic accountant; and lastly, 4) The role
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just to name a few. Enron and Arthur Andersen auditors had such a partnership where Arthur Andersen auditors provided accounting support. There were unethical practices that lead to the collapse of both companies. Arthur Andersen Auditors Arthur Andersen the founder of the company began his career at a young age. Mr. Andersen first partnered with another accountant to build an accounting firm. This partnership only lasted a few years. After the slip Mr. Andersen made it his mission to have his company
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Final Project – Time Capsule Since the creation of time, man has been inventing creations to enhance and abet the living experience of human beings with hopes of making daily tasks (domestic or work) more manageable while exerting less physical effort or for safety measures. This time capsule has been written to share with future generations some of the creations that were made near the end of the 20th Century and the beginning of 21st, to afford a propitious soul with a better understanding how
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than previously reported, in fact $1.2 Billion less (Securities fraud FYI.com 2006). Originally in an attempt to attract new investor’s managers acted unethically in the way of providing false income statement figures. The accounting firm Arthur Andersen was proven to be a major contributor in the scandal that led to the collapse of Enron and a loss of billions to investors. While the investigation proved some insiders tried to alert attention or raise warnings about the accounting irregularities
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senior managers had engaged in fraud for an extended period through a scheme in which partnerships owned by the managers could receive payment for goods and services never provided to Enron. In addition, the firm’s external auditing firm, Arthur Andersen, was complicit in the fraud by knowingly certifying false financial statements as accurate. Arthur Anderson participated in the fraud because the firm did not want to risk losing lucrative consulting contracts from Enron, which created a conflict
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income statement, cash flow statements, and/or retained earnings sheets is unethical in every sense of the word. Reporting false figures to the government is also illegal. Enron did all of these things. The organization hired to audit Enron (Arthur Andersen, LLC) even went as far as
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