electric blankets in the summer and barbecue grills in late autumn. Eventually, earnings woes and Dunlap's bluster prompted his ouster by an aroused board of directors in June 1998. That was followed shortly by the replacement of accounting firm Arthur Andersen and a series of investigations and shareholders lawsuits, most of which are still pending. Sunbeam joins an ignominious cluster of companies — Rite Aid, c u e International (now part of Cendant Corp.), Livent, Oxford Health Plans, Phar-Mor, Miniscribe
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Olympus Corporation. Some of these have resulted in the collapse and dissolution of the company – Enron, Adelphia; others have resulted in a major restructuring of the company – AOL, AIG, Freddie Mac. Whatever the result, they have all been caused by accounting fraud – either “cooking the books” to hide major losses or to hide the theft of funds. It has also resulted in the failure and absorption of the one of the Big Five Accounting firms – Arthur Anderson. Besides the whistle blower who brought most
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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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Group, the consulting arm of accounting firm Arthur Andersen. In 1989, it launched as a separate business unit focused on IT consulting and bearing the name Andersen Consulting. At that time, though it was earning $1 billion annually, Andersen Consulting had low brand awareness among information technology consultancies and was commonly mistaken for its accounting corporate parent. To build its brand and separate itself from the accounting firm, Andersen Consulting launched the first large-scale advertising
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Sustainability and Ethics in Accounting : Waste Management Inc. Accounting Fraud The Business Dictionary defines "ethics" as the basic concepts and fundamental principles of decent human conduct. Most definitions agree with this one ; however, these principles are subject to personal and societal points of view that might differ depending on the context and individuals. Due to this subjectivity, codes of conduct have been created to ensure the application of discipline and morality not only personally
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over the years which caused staffs and the board of directors satisfied with management. Later on throughout the years, it was confirmed that management was securing two sets of books, they were holding on to billions of dollars worth of dept. Arthur Andersen, who is a part of a major accounting firm
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Phar-Mor Inc., a deep discount drugstore chain, was founded in 1982 by Michael J. “Mickey” Monus, who was a vice-president of Tamco Distributors Co. By 1992, Phar-Mor have 310 outlets and 20,000 employees in 34 states. Phar-Mor went into bankruptcy in 1992 due to fraudulent activities, which had caused its investors over $500 million dollars. The Sarbanes-Oxley Act of 2002 (SOX) could have prevented the bankruptcy if it had been in effect and was able to be applied to Phar-Mor Inc. The fraudulent
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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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fraud investigations, the company was forced to file for bankruptcy in December 2001. Enron was “a provider of products and services related to natural gas, electricity and communications to wholesale and retail costumers” The sudden and unexpected collapse of Enron Corp. was the first in a series of major corporate accounting scandals that has shaken confidence in corporate governance and the stock market. Only months before Enron’s bankruptcy filing in December 2001, the firm was widely
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DOWNFALL Corporate Culture and its Role in the Downfall Of Arthur Anderson LLC and Sunbeam Corporation Darrell V. Davis Grand Canyon University Bus 604 Business Ethics July 5, 2009 Abstract Corporate culture plays an extremely important role in the development of a company. Whether explicitly stated or not, the culture of a company reveals its attitude, motivation, and intentions. Arthur Andersen’s and Sunbeam’s cultures revealed that they were on the hunt for huge profits
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