The Enron Collapse Enron, a high profile organization which ranked as the seventh largest company in the United States during the 1990’s consisted of approximately 25,000 employees worldwide and held revenues in the tune of over 100 billion dollars in 2000. Enron controlled about one quarter of the gas companies in the United States and also expanded into Myriad energy products during its years of operation. The company traded hundreds of products throughout the wider Continentals including South
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ICS PRESENTATION CASE 2 Issue 3 : Auditor’s issue. The independence of auditor’s in Flat Cargo Berhad(FCB) is much questionable. This is mainly due to the fact that the appointed company auditor has been previously hit by another case of fraud in the other entity concern. This could be a very worring circumstances that the company has to face as there is high posibility of the auditor to commit fraud the second time in FCB. The lack of independence in the auditor could lead to inappropriate
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practices in business. The Sarbanes-Oxley Act of 2002 (SOX) was passed by the 107th Congress on July 30, 2002 (Sarbanes-Oxley, 2002) to provide protection to investors and shareholders as a result of fraudulent activities by some U.S. Corporations such as Enron, Tyco, WorldCom, and Adelphia, as well as other public companies (Jennings, 2012; Scott & Nganje, 2011). SOX introduced major regulatory changes which affect financial practice and corporate governance; and compliance is mandatory for ALL organizations
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when will the fraudulent activity stop. The answer is never because as long we have businesses someone go to the dark side and do dishonest things. Since the SOX and creation of PCAOB and AICPA the activity has been a small amount and not as large as Enron and World Com. Also the number of auditors getting in trouble are in small amounts of activities. Even though they might think they were successful in manipulating the work papers, they will always get caught or do the right thing turn themselves in
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Effect of Unethical Behavior Article Analysis Chris May 6, 2013 Acc 291 Judith Vargas University of Phoenix I am going to explain in this paper some situations that might lead to unethical accounting and how we can identify some of the unethical practices in accounting. In an article that I read it talked about how when the economy is down that a lot of companies enforce ethics and make their ethical policies even better, but at the same time the article also states that when the economy
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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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author will be examining the detailed changes issued by the New York Stock Exchange and modified by the 406 of Sarbanes-Oxley, which deals with addressing unethical conduct and their reasoning for these methods. The disaster, which occurred at Enron in 2003 where the company’s officials made terrible decisions to waive provisions within their code of ethics, resulted in one of their financial leaders receiving under the table gifts through the companies form of transactions. This action along
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recordkeeping, as well as finding a balance in order to provide assurance and accurate recordkeeping for the business, for the investors and anyone else involved in the business. | Introduction In the wake of the US corporate scandals, such as Enron and Lehman Brothers, the integrity of accounting standards were under review. Shareholders’ confidence in financial statements and public accounting firms was shaken, due to the fact that the United States had always used rules-based accounting standards
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HealthSouth was one of the largest provider of outpatient surgeries in the United States. Not only the largest provider of outpatient surgeries in the United States but also the largest diagnostic and rehabilitative health care service in the United States. This was until March 19, 2003, when the Securities and Exchange Commission charged the company and Richard Scrushy with fraudulent account reporting of company finances. Scrushy and other executives from the finance and accounting departments
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What are the main reporting options available to government colleges and universities? Do they have to prepare fund statements? Explain. Universities are permitted to prepare financial statements the same way corporations report special purpose entities. In other words they can report business type enterprises as SPI’s and not report the funds in fund statements. Public colleges and university must follow GASB pronouncements like other governmental institutions. They are allowed to follow the
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