Excello Telecommunications: Profit at a Price There are moments in life that can forever define and potentially change not only an individual but an entire corporation as well. With the fiscal year of 2010 coming to a close, Terry Reed the operating CFO of Excello Telecommunications faced such a dilemma. For the first time, Excello was on track to finish out the year below anticipated financial goals, which would resonate throughout the company and its’ stock. This presented Excello with the
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Enron case analysis: Occurred because: Leaders’ obsessive attention for the pursuit of profits: The issues that capture the attention of the leader (i.e. what is criticized, praised or asked about) will also capture the attention of the greater organization and will become the focus of the employees. If the leaders of the organization focus on the bottom line, employees believe that financial success is the leading value to consider and traits like integrity became a non-factor within the culture
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practices and possible solutions to improve the corporate accountability and the financial reports they convey to the public and investors. There have been a number of accounting fraud sandals in the last decade, some of these companies include; Enron 2001, Worldcom 2002, Tyco International 2002 and locally, Tom Peters Company 2008. As a result of these most recent accounting frauds, congress passed the Sarbanes-Oxley act in 2002. The Sarbanes-Oxley Act * Applies to publicly traded companies
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Baluyot, Krishia Mae E. BSAV-2A Scandals that Rocked the Accounting World ❖ Enron Scandal The Enron Corporation led to bankruptcy Last October 2001. It is an American energy company based in Huston, Texas, and the termination of Arthur Andersen, which was one of the biggest audit and accountancy partnerships in the world. Enron is also attributed as the biggest audit failure. Enron was founded in 1985 by Kenneth Lay after merging Houston Natural Gas and Inter North several years
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que ellos puedan usarla para crear valor para los clientes. Pero en la auditoria de Enron olvidaron su filosofía y violaron varias leyes, la que no solamente afecto su reputación, si no que afecto la reputación de toda profesión de contable en general. Los errores que cometieron fueron la destrucción de documentos importantes y hacerse de la vista larga ante practicas contables fraudulentas de Enron, las personas a cargo no cumplieron con su trabajo ya fuera intencionalmente o por negligencia
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THE SARBANES OXLEY ACT of 2002 The Sarbanes Oxley Act of 2002 was signed into law after a series of corporate financial scandals affected companies such as Enron, WorldCom, and Arthur Anderson. It provides a solid set of government rules that will discourage and punish corporate and accounting fraud and corruption by imposing severe penalties for wrongdoers, while protecting the interest of workers and shareholders. Acknowledged as the most significant change to securities laws since
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Enron Committed Suicide Name Leadership/LDR 531 April 11, 2011 Instructor Enron was considered the major player in energy and considered as one of the most successful companies until it collapsed in 2001. Failure of this company did not only affect the employees and stakeholders, but also it had a negative impact on the United States economy. Public scrutiny of Enron’s failure, through legal battles, revealed how the toxic organization leadership and culture were two of the major reasons
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ABACUS, Vol. 42, No. 2, 2006 doi: 10.1111/j.1468-4497.2006.00196.x ABACUS PRINCIPLES ORIGINAL ARTICLE 2 42 © 2006 0001-3072Publishing, Ltd. Abacus UK VERSUS RULES-BASED ACCOUNTING ABA Accounting Foundation, Unviersity of Sydney Oxford, Blackwell GEORGE J. BENSTON, MICHAEL BROMWICH AND ALFRED WAGENHOFER Principles- Versus Rules-Based Accounting Standards: The FASB’s Standard Setting Strategy In response to criticism of rules-based accounting standards and Section 108(d) of the Sarbanes-Oxley
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Page 1 FOCUS - 1 of 3 DOCUMENTS Mondaq Business Briefing November 7, 2006 Canada: Why Bernie Ebbers is Serving a 25-Year Jail Sentence BYLINE: By Garfield Emerson LENGTH: 6613 words 1. Background On September 26, 2006, Bernard J. Ebbers ("Ebbers"), the former Chief Executive Officer of WorldCom, Inc. ("WorldCom"), reported to a federal prison in Oakdale, Louisiana, to begin serving his 25-year jail sentence from his conviction by a jury on nine counts of conspiracy, securities fraud
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REMARKS BY CHAIRMAN ARTHUR LEVITT SECURITIES AND EXCHANGE COMMISSION THE "NUMBERS GAME" NYU CENTER FOR LAW AND BUSINESS, NEW YORK, N.Y. SEPTEMBER 28, 1998 Thank you very much. Dean Daly, Dean Sexton and to everyone gathered this evening, thank you for welcoming me tonight. I am honored to be here on such an auspicious evening for both NYU and Bill Allen. The creation of the Center for Law and Business recognizes an important truth: we cannot continue to view the worlds of business and law as parallel
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