Ethical and Legal Implications of Excello Telecommunications Cheryl Moore ETH/376 March 4, 2012 Susan Paris Ethical and Legal Implications of Excello Telecommunications Excello Telecommunications has suffered a downward financial spiral. This downward spiral will affect bonuses, share prices, and stock options (Mintz & Morris, 2011). Terry Reed, the Chief Financial Officer of Excello Telecommunications, frets over showing the downswing in profits. In searching for additional reportable
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Sarbanes Oxley Act The Sarbanes Oxley Act was enacted in 2002 as a reaction to a number of major corporate and accounting scandals which included Enron, Tyco International, Adelphia, Peregrine Systems, and WorldCom. This Act which is commonly known by the acronym “SOX” was put in place to protect investors from unethical companies practicing questionable accounting standards. The Senate refers to this Act as the “Public Company Accounting Reform and Investor Protection Act” and the House refers
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and investors to create an efficient and functional business with long term viability and value ("Corporate Governance Best Practices," 2002, p. 8). The concept of adopting a formalized process should be fairly evident. Corporate scandals such as Enron and WorldCom devastated entire corporations as well as national and world financial crisis created by banking and mortgage industries. The government has stepped in and enacted legislation such as Sarbanes-Oxley in an attempt to prevent future occurrences
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Effects of Unethical and Irrational Decision Making at Enron DePaul University Managers and employees are often faced with ethical problems. The decisions that are made in regards to handling those problems can define an individual's career and determine the ultimate fate of their organization. In this discussion, examples of decisions that were made by Enron employees will be discussed that will exemplify this point. The first decision that will be discussed is the
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Organization One of the world’s leading electricity companies, Enron Corporation, suffered from a financial scandal, which involved the corporation and its accounting firm. The scandal happened during the 1990s and was a result of irregular accounting procedures. This scandal caused Enron to file bankruptcy in December 2001 (Thomas, 2002). The subject of this paper will discuss how organizational behavior theories could have predicted or explained Enron failure. This subject of this paper will also compare
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Impact of Unethical Behavior Article Analysis Donna Sutton University of Phoenix Financial Accounting II ACCT 363 VERN May 09, 2010 Impact of Unethical Behavior Article Analysis The impact of the financial crisis created by such companies as Enron gave a reason for Congress to address some of the unethical practices of accountants. The American public no longer trusted accountants after losing retirements and life savings after making investments in companies that were reporting false financial
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The Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; July 30, 2002) is a United States federal law passed in response to a number of major corporate and accounting scandals involving prominent companies in the United States. This examination of the Sarbanes- Oxley Act of 2002, will address the following: 1.Analyze the new or enhanced standards
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2007 Impact of Sarbanes-Oxley Act Not only were billions of dollars lost in corporate accounting scandals involving Enron and Worldcom, thousands of jobs on top of an immeasurable amount of credibility was also lost in the process. As most everyone knows by now, or should know, 2002 became a turning point in the world of business. Publicly traded companies such as Enron and Worldcom were caught by the SEC misrepresenting financial statements, quickly leading to steep downward spiral in stock
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Public companies have additional reporting and procedural obligations since the passage of the Sarbanes-Oxley Act, many of which may be costly for a company to implement, such as the Section 404 requirements relating to internal controls over financial reporting. (http://www.inc.com/guides/preparing-for-initial-public-offering.html) The things LJB should continue to practice are: The use of pre-numbered checks and pre-numbered invoices makes it easier to spot a missing document. (Documentation
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Adoption of the Sarbanes-Oxley Act of 2002 as an Important Piece of Legislation Accounting I 02/27/2011 Analyze the new or enhanced standards for all U.S. public company boards, management, and public accounting firms that the SOX required. The main purpose of the Sarbanes Oxley Act was to establish an accountable system of regulations and policies to ensure proper compliance. The set of standards and deadlines the act put into place was mainly in response to an alarming amount of corporate
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