In November 2001, Arthur Andersen & Co. employees in that firm’s Houston office shredded certain Enron audit workpapers during the midst of a federal investigation of the large energy company. The decision to destroy those workpapers ultimately proved to be the undoing of the prominent accounting firm. A few years later, a felony conviction for obstruction of justice would effectively put Andersen out of business. Ironically, at the same time that the Andersen personnel were shredding Enron workpapers
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Unraveling the Details of 10 High-Profile Accounting Scandals written by: ciel s cantoria • edited by: Linda Richter • updated: 12/30/2010 Before digging into the dirty details of each of these major accounting scandals, we’ll take a look at some of the tools that were used to first detect them – including sophisticated accounting systems and advancements in high-tech communication. Technology Fighting Against White Collar Fraud Looking back at the 10 major accounting scandals that changed the
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was subjected to a series of highly publicized scandals. For example, it was discovered that the prestigious Arthur Andersen firm had played a role in the fraudulent reporting practices that led to the bankruptcy of the Enron Corporation. Andersen accountants had helped the company hide its losses, and had shredded important documents that were relevant to the case. In June 2002, Andersen was found guilty of obstructing justice, was fined $500,000, and was sentenced to five years probation (Sachdev
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In the process of accountancy reforming and internationalizing, our country refers to the accounting standards in the USA to a large degree. However the audit failure always happens in America accounting firms. In recent years, a series of financial embezzling cases have taken place in the United States. The quantities and influence wouldn’t be anticipated. Audit failure means that CPA provides error audit opinion for unfaithful statements because he or she doesn’t confirm to audit standard
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Wei Kevin Luk Kevin.luk@stmartin.edu Wei Kevin Luk Kevin.luk@stmartin.edu AIG’s “LOSs Reserve” accounting Scandal 2005 AIG’s “LOSs Reserve” accounting Scandal 2005 Introduction AIG, American International Group Inc., is one of the top multinational insurance corporations. AIG, with asset of 556 billion, provides insurance service for more than 150 different countries and it has over 630, 000 employees over the world. Even though AIG is such a giant corporation, it has
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The Enron disaster resulted in $66.4 billion dollars of losses to shareholders and 6,100 losses in jobs. Arthur Anderson LLP played a major role in the demise of this billion dollar company. Arthur Anderson provided auditing services for the Enron firm as well as consulting services. Due to Arthur Anderson’s failure to properly audit the Enron Corporation, Enron fell under criminal investigation. Author Anderson negative contribution of auditing services ultimately caused a chain of events that
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PricewaterhouseCoopers Competitor Intelligence Report MGD 426HF Professor Tim Richardson Gabriela Rojas 998288160 Thursday, October 16th, 2014 Description of the business sector within which this enterprise operates: PricewaterhouseCoopers is an international professional services network that provides industry focused assurance, auditing, consulting and tax services for a variety of companies with the majority of their revenue coming from business to business relationships. The firm was
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3. Leslie- Employee 1 4. Kylie- Employee 2 (a junior auditor working with Cynthia Cooper) 5. Donna- Arthur Andersen 6. Brynner- David Myers (Controller) 7. Patrick- Bernard Ebbers (ex-CEO) 8. Ivy- The Government (SEC) 9. Ruby- Employee 3 Scene 1: INTERROGATION Setting: Interrogation room Individual frames on each interviewee (Scott, Cynthia, The Employees, Andersen, David Myers, Bernard Ebbers) Frame 1 (Interrogation of David Myers) Ivy: What was your involvement in the
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reason Enron failed El texto nombra 3 principales causas del hundimiento de la compañía, como todos sabemos que vienen del hecho de las malas prácticas financieras dentro de la compañía. Primer Error Jeff Skilling se clave en convencer a Arthur Andersen y a la seguridad gubernamental para poder integrar la técnica financiera del Market to Market (M2M) que serviría para transformar a la compañía en un “banco de energía”, es decir entregar cobertura inmediata cubriendo el riesgo de demanda de
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Learning Team Reflection: Week 2 March 4, 2015 Jean Goodman Learning Team Reflection: Week 2 Arthur Anderson was a leading accounting firm in 2002 and the organization was destroyed that same year A number of mistakes were made by Arthur Andersen leading to the failure of the organization; these were portrayed in the case, “A Sad Tale: The Demise of Arthur Anderson”. Arthur Anderson became commonly known for the motto “Think Straight and Talk Straight” (Parrino, Kidwell, & Bates, 2012)
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