ENRON: The Idiocy and the Irony Introduction Red flags were blinding as Enron learned about possible corruption with Enron Oil Trading in Valhalla, New York. After the merger between HNG and InterNorth, the Valhalla office, originally established by InterNorth seemed all but forgotten until quarterly and annual reports were due. Supervisors Tom Harding and Steve Sulentic were rarely on-site, preferring the comfort of offices in Houston. Louis Borget who established and operated the trading
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alike to raise serious questions about the credibility of corporate financial reporting and the ethical implications impacting international economic vitality and social wellbeing. Purpose and scope: The objective of this report is to use specific cases in which transparency was obscured to demonstrate the correlation between lack of transparency and scandal and provide that increasing standards for Corporate Transparency makes business practices not only more ethical, but also more efficient. Part
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Ethical Obligations and Decision Making in Accounting Text and Cases Steven M. Mintz, DBA, CPA Professor of Accounting California Polytechnic State University, San Luis Obispo Roselyn E. Morris, PhD, CPA Chair and Professor of Accounting Texas State University-San Marcos Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
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What’s the Difference?: An Exploration Into the Different Aspects of Ethical and Unethical Leadership Richard Borashan Randall Carter Jr. Ting-Jung Hsu Ya-Hui Hu University of La Verne October 12, 2011 Table of Contents * Abstract * Introduction * What is the moral responsibility of a leader * Why is the moral responsibility of a leader important * Principals of ethical leadership * Five ethical behaviors * The impact of unethical leadership in organizations
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is a case to be made in support of SOX. The research relies on historical data, such as the Enron scandal, and the recent decision by the United States Supreme Court decision that deems SOX as constitutional, to support that legislation is a necessary requirement in today’s global corporate environment, in which some of the largest corporations have proven that, left to their own devices, they will gravitate toward corporate malfeasance. The Sarbanes-Oxley Act of 2002: WorldCom. Enron. Adelphia
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............................... 14 2.2 Self-regulation prior to SOX ..................................................................... 18 3. Literature Review: The SOX Act ................................................................ 19 3.1 Enron, the trigger to SOX? ........................................................................ 22 4. The Sarbanes Oxley Act: Radical Reforms in Key Areas ....................................... 26 4.1 Establishing the Public Company Accounting Oversight
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Further permissions questions can be emailed to permissionrequest@cengage.com Text Permissions Manager: Timothy Sisler ExamView® and ExamView Pro® are registered trademarks of FSCreations, Inc. Windows is a registered trademark of the Microsoft Corporation used herein under license. Macintosh and Power Macintosh are registered trademarks of Apple Computer, Inc. used herein under license. Technology Project Editor: Rob Ellington © 2009 Cengage Learning. All Rights Reserved. Content Project Manager:
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CASE STUDY – UNIT 1 1. Andrew Fastow is a key person responsible for the downfall of Enron. When he became the CFO in 1998, he came up with the plan to make the company appear in great shape by using the mark-to-market accounting practice. The company would build an asset, such as a power plant, and immediately claim the projected profit on its books, even though it hadn't made one dime from it. If the revenue from the power plant was less than the projected amount, instead of taking the loss, the
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outcomes. For example, studies have shown that a higher ethical work climate (Mulki, Jaramillo, and Locander, 2008) and top leadership support for ethics and both positively relate to job satisfaction. Ethics codes (Valentine and Fisherman, 2008), ethics training, and perceived corporate social responsibility are also linked to job satisfaction. Unethical business research at work ranges from minor acts of deviance to immoral decisions that result in catastrophes such as the Enron and Merrill Lynch &
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ARE ACCOUNTING FRAUDS? | NOTABLE FRAUDS | NOTABLE OUTCOMES | MANIPULATION & FALSIFICATION OF RECORDS | MISAPPROPRIATION OF CASH BALANCES | MISAPPROPRIATION OF GOODS | TEEMING & LADING | WINDOW DRESSING | SECRET RESERVES | ENRON FRAUD | WORLDCOM FRAUD | WHAT ARE FRAUDS ??? FRAUDS AND THEIR CHARACTERISTICS Misstatements in the financial statements can arise from fraud. In criminal law, a fraud is an intentional deception made for personal gain or to damage another
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