1. Which of these assertions were relevant to Paragon’s construction projects? For each of the assertions that you have listed, describe an audit procedure that Arthur Andersen could have employed to corroborate that assertion. We think the assertions relevant to Paragon’s projects are as follows: 1) Existence and occurrence, 2) Completeness, and 3) Valuation or allocation. The case details mention two examples of Paragon’s aggressive revenue recognition that Arthur Andersen would have caught
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Chapter 1 THE PROBLEM AND ITS SETTING Background of the Study The business world changes in every tick of the clock. As a result, businesses tend to rise or fall and the stability of the business enterprise is always at stake. But, business sustainability depends on its financial performance and the people governing the business. And to measure whether companies are capable of handling potentially unexpected corporate risks, companies’ accounting transactions are reported through financial
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Comm101 Tutorial 1) What were the individual factors that contributed to the failure of Enron? Briefly explain two key factors. Enron collapsed in large part because of the unethical practices of its executives. Egoism (Self interest) was one of the major factors contributed to the failure of Enron. Enron’s executives put their own interests above those of their employees, company and the public, and failed to exercise proper oversight or shoulder responsibility for ethical failings. They
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Auditing 1/26/15 Enron Enron began as Northern Natural Gas in 1932. In 1979 the company reorganized and became InterNorth. InterNorth was in the business of creating energy products such as natural gas and plastics. Later InterNorth merged into what was known as Enron with the new CEO Kenneth Lay running the show. He then began moving the headquarters to Houston, where they began selling off assets to limit their losses initially. The misleading financial accounts began when Jeffrey Skilling
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Assignment 3: Fraud in the AIS Ditanyan Patterson Jay E. Wright, CPA, CFE Strayer University ACC.564 August 17, 2014 Abstract After researching for a firm that was involved in a fraud and/or embezzlement case I came upon the embezzlement of Koss Corp. Koss Corp was a company in Milwaukee, Wisconsin that manufactured stero headphones, speaker phones, computer headsets, wireless headsets, and much more. The case of Koss came about because of inaccurate financial ststements, books and records
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In the repercussion of Enron‘s bankruptcy filing, numerous Enron executives were charged with criminal acts. Those charges were fraud, insider trading and money laundering. Enron was described as―House Of Cards‖ as it was built over a pool of gasoline. It all sort of became smoke and mirror. Louis Borget, former Enron's CEO was also exposed to be rerouting company’s money to offshore accounts. Once their schemes were discovered by the auditors, Kenneth Lay encourages them to "keep making us millions"
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SYNOPSIS In the early 1990s, Enron International entered into an agreement to build two gas fired power plants in India. The plants would help supply electricity in a country whose rapidly growing power needs were far exceeding existing generating capacity. The plants were to be gas fired, receiving a portion of the gas from Indian fields and a portion from a facility Enron was building in Qatar. While the general idea behind the projects had been approved at the highest levels of the federal
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Content Abstract 3 Introduction 4 The Accountant’s responsibility to clients 4 The Accountant’s responsibility to third parties 5 The Accountant’s responsibility to the government 5 Action or claims against accountants by clients 6 Action or claims against accountants by third parties 6-7 Action or claims against accountants by the government 7 Accounting-Client privilege 7 Whistleblowing 8 Conclusion 8-9 Reference
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The Sarbanes-Oxley Act Creates Ethics in Accounting While contemplating the question of has the Sarbanes-Oxley Act (SOX) made a difference in ethical behavior; the question came to mind; has any law ever succeeded in legislating ethical behavior? The short answer is no, but SOX has lessened the chance of unethical behavior going un-detected. In 2006 top executives at over 150 companies took advantage of lenient reporting policies; where they chose the lowest stock price during a previous quarter
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Introduction The objective of this essay is to identify the key factors involved based on two opposing perspectives as to whether business practice should be treated as a profession or not. The essay aims to discover as to which argument is more compelling and the reasons for it. The essay will conclude with supporting reasons favouring one of the two points of view. Business as a Profession This section will provide arguments that support the idea of business and management
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