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
2. Arthur Andersen Contribute to the Enron Disaster AA was incapable to either spot or ignored Enron’s manipulation which allowed fraud to take place. AA did not provide opinion to Enron’s audit committee. The firm CFO and the assistants were involved in situations that resulted in a significant conflict of interest and AA have no alternatives approach to manage those conflicts. Even though AA had undertook Enron’s audit function responsibility, AA failed to advice on Enron’s internal controls
Words: 761 - Pages: 4
to who should be reviewing the related-party transactions and the degree of such review. The Board was also unaware of other conflicts of interests with other transactions. The Board did not effectively communicate with its auditors from Arthur Andersen. The idea that Enron’s employed accounting techniques were "aggressive" was not communicated clearly enough to the board, who were blinded by its trust in its respected auditors. The Board did not give enough consideration when making important
Words: 506 - Pages: 3
WorldCom where being talked by lamplight and bundling as Enron is a lot of in topic of accounting fraud. However, the volume of information that can be obtained in Japanese is far less compared with Enron. The fact relevance makes the description of the case a base. WorldCom is a huge telecommunication company that exists in the United States before. The company that Mr. Bernard Ebbers founded in 1983 accomplishes the rapid growth repeating M&A with tremendous force. Long-distance telecom carrier
Words: 1021 - Pages: 5
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
determine which requirements apply to the Arthur Anderson case. Then we will discuss how the issues with the Arthur Anderson case may have played out differently if the Sarbanes-Oxley Act had been enacted in 1999. Next we will determine and discuss which elements of the framework for ethical decision making in business (from Chapter 5) played the biggest role in the Anderson case. Explain your reasoning. Lastly, we will discuss how the situations at Arthur Anderson may have played out differently
Words: 2040 - Pages: 9
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
auditors did not feel they could question accounting or disclosure treatments. In an effort to increase revenues creative and sometimes questionable accounting techniques were used. As I am sure most of us remember with the fall on Enron in 2001, Arthur Anderson and the SEC signed off on the use of “mark-to-market” accounting, allowing Enron to recognize
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
Words: 278 - Pages: 2
Running Head: Summary of A Sad Tale Week Two Learning Team A Summary of A Sad Tale FIN/561 September 30, 2014 Read the Ethics case, "A Sad Tale: The Demise of Arthur Anderson" located in the WileyPLUS Week Fundamentals of Corporate Finance Chapter readings. Discuss the mistakes made by Arthur Anderson and potential actions that leadership could have taken to prevent the organizational failure. Write a 350- to 700-word summary of your discussion. Click the Assignment Files tab to submit
Words: 787 - Pages: 4
