two of the more well-known ethical issues that occurred in the late 1990s and early 2000s, Enron Corporation and WorldCom. This paper will focus on the factors that led to the demise of the corporations, as well as the violations that occurred within the accounting practices, and the specific ethical violations in strategic financial planning. To summarize, the largest contributing factor to the demise of Enron Corporation and WorldCom was simply corporate governance failure (Stanford GSB Staff, 2016)
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competition intensified. Crisis brings improvement just like the Sarbanes-Oxley Act after Enron. Hopefully, Toshiba will impetus reform of corporate governance. One thing the author emphasized is that entertainment expenses should be taxed, or it will be bad for profitability when entertainment is still encouraged. (Cited from Bloomberg: http://www.bloombergview.com/articles/2015-07-29/japan-has-an-enron-moment-after-accounting-scandals) Metro: from safety problems to accounting problems Washington
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Auditing Standards Accounting 491 November 16, 2015 Dwayne Thompson Auditing Standards The art of auditing has evolved over several decades. The use of technology has changed the procedure significantly. Along with the evolution of standards and procedure are necessary to ensure economic growth and financial stability. Before 2002, it seems as though auditing took a reactive approach to questionable circumstances and dealings. Today the powers in control are producing a proactive approach
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ACC 291 WEEK 5 INDIVIDUAL EFFECT OF UNETHICAL BEHAVIOR ARTICLE ANALYSIS To purchase this visit here: http://www.nerdypupil.com/product/acc-291-week-5-individual-effect-of-unethical-behavior-article-analysis/ Contact us at: nerdypupil@gmail.com ACC 291 WEEK 5 INDIVIDUAL EFFECT OF UNETHICAL BEHAVIOR ARTICLE ANALYSIS Write a 350- to 700-word article analysis in which you identify situations that might lead to unethical practices and behavior in accounting. Examine the effect of the Sarbanes-Oxley
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Sarbanes-Oxley Act Sarbanes-Oxley is a United States federal law, which is also known as the public company accounting reform and investors protection act and corporate and auditing accountability and responsibility act. Sarbox or Sox are shorter names given to the company. Paul Sarbanes (US Senator) and Michael G. Oxley (US Representative) are the ones who support this act. This act is intended to protect investors by improving the precision and consistency of corporate disclosures made pursuant
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Enron – “The Smartest Guys in the Room” Who were the smartest guys in the room? Kenneth Lay, the founder of ENRON. Louis Borget, the CEO who diverted company money to offshore accounts. Jeffrey Skilling, the CEO who implemented the mark-to market accounting. J. Clifford Baxter and Lou Pai, the executives who Skilling hired. Andrew Fastow, the CFO who created companies solely to do business with Enron. The auditors, who turned the head when the money came rolling in. Are these the
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Reporting Practices and Ethics Latarshia Jackson HCS 405 February 19, 2012 Conway Brew Reporting Practices and Ethics The misrepresentation of financial reports for any organization can bring about dire consequences. A financial accounting system provides insight into the company expectations and Many organizations depend on account management that works closely with organization management performance. Having effective management of accounting information, allows an organization to be able
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Mr. Leverage, I was recently informed through a colleague about your upcoming decision of going public with your company. Let me first congratulate you on making such an executive decision. This decision will not only change your company it will also change your life. There is much entailed in going from a private entity to a public one. There are many advantages as well as disadvantages, and you must be well prepared and informed of both in order to deal with these issues. From the information
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to be some guidelines in accounting to prevent fraudulent activities from occurring. In the 1990’s businesses would create false financial statements in hopes to raise their stock prices to get more investors. The most notable company to crash was Enron, followed by Global Crossing which is the parent of MCI, and Xerox; later, almost one thousand publicly traded companies restated their financial statements. This resulted in almost $6 trillion of stock market value disappearing (Cunningham, 2003)
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Sarbanes-Oxley Act (SOX) ACC290 March 29, 2012 Sarbanes-Oxley Act (SOX) The Sarbanes-Oxley Act (SOX) was created on July 2002 after numerous financial scandals involving companies such as Enron and WorldCom. The main section of the act which is section 404(a) requires management to provide the financial reporting accurately and effectively. This is called Internal Control over Financial Reporting (“ICFR”). There are several sections that have been created to assure the accuracy of the financial
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