FROM ABCNEWS.COM A Cheating Crisis in America's Schools April 29 Angelo Angelis, a professor at Hunter College in New York City, was recently grading some student papers on the story of Paul Revere when he noticed something strange. A certain passage kept appearing in his students' work, he said. It went like this, Angelis told Primetime's Charles Gibson: "Paul Revere would never have said, 'The British are coming, the British are coming,' he was in fact himself British, he would have said
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bring a new product to market. Usually the SPEs are not owned by a company – although the company may have controlling interest. SPE’s attained notoriety because of their misuse by Enron. The CFO of Enron set up SPE’s specifically to (a) keep debt off the books of Enron, and (b) facilitate the recognition of income by Enron by transferring impaired assets to the SPE and recognizing gains on the sale of the assets. 14-27. c. 14-29. a. 14-40. a. The sale should be recorded including any
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Auditing Cases An Interactive Learning Approach FIFTH M F S D E D ITIO N S. B A. B M. G F. P Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Donna Battista Acquisitions Editor: Stephanie Wall Editorial Project Manager: Christina Rumbaugh Senior Managing Editor: Cynthia Zonneveld Production Project Manager:
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statements, and also raised issues like loyalty to bosses and co-workers, expectation gap and internal control. When a fraud initiates, it is usually not because the involved person intends to commit a crime or he/she is immoral, instead, in most cases, it is because of pressures from financial situations or peer group/ upper management. This is one of the aspects in the fraud triangle explained in the book. Many individuals who grow up with moral values like honesty and integrity fail the test when
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were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities and fraud being investigated and disclosed brought into question the effectiveness of financial statement audits. In addition, the criminal conviction of Arthur Andersen, LLP, one of the then Big 5 accounting firms, on charges of destroying documents related to the Enron case brought into question
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Touro University International ETH 501 BUSINESS ETHICS MOD 1 CASE STUDY Dr. Cathy Anderson Introduction The case against Martha Stewart surrounded her sale of 3,928 shares in ImClone Systems Inc., and whether she lied to investigators and her company's investors about it. On Dec. 27, 2001, Stewart cashed out her ImClone stake at an average price of $58.43, collecting about $229,500. After the market closed the following day, the Food and Drug Administration announced its refusal
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“Ethics is the discipline dealing with what is good and bad, or right and wrong or with moral duty and obligation” (Mondy, 24). Ethics appears to be beast with two solid answers- right and wrong. The problem for students dissecting this problem is that the answer does not come two easy is some cases and in other instances, well the answer is black and white and very noticeable. My first exploration in ethics started in the year 2007 when I learned about ethics in Counseling. All is different but the idea
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Protection Act of 2002 is also used to refer to this law. Numerous acts of corruption in the business sector continued throughout the late 1990s as well as early part of 2000 with no laws to prevent it. In response to the very public case of WorldCom and Enron fiscal scams, the Sarbanes-Oxley Act of 2002 (commonly called SOX) was passed to protect the public and investors from unfair practices and accounting mistakes (Rouse, 2007). In order to safeguard shareholders, the president at that time
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• What basic “stylized facts” characterize the current U.S. financial system? • Do transactions costs and asymmetric information help to explain these stylized facts? • Enron Case Study (Mishkin p. 177, and asymmetric information problems in securities markets exemplified by the Enron bankruptcy scandal? online html notes “Enron Scandal & Moral Hazard”): In what ways (if any) are © 2004 Pearson Addison-Wesley. All rights reserved 8-2 Financial Structure Manner in which firms finance their
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1. How does Williams get into financial distress? Answer: a) Write-off of investment in WCG During the Tech Bubble, the whole telecom market that WCG was involved in suffered a lot of problems due mainly to a large oversupply, as indicated by an estimated 2% to 5% of the fiber- optic lines which were only carrying traffic. There venue of WCG eventually plummeted, wherein prices of the lines decreased by more than 90% from 1998 and 2002.When WorldCom filed for bankruptcy protection in July
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