Reporting Practices and Ethics Christine Crumity HCS 405 Module R4 October 10, 2011 Barbara Archer Reporting Practices and Ethics Reporting practices and ethics are the seams of health care accounting and management. It is important that the principles and practices are adhered to in order for the organization to continue operating. Health care is an organization which thrives on care and safety along with stability. It is management’s responsibility to ensure that not only care criteria
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ENRON: Enron was a giant global corporation that depended on outside credit sources to finance its daily operations. In turn its credit- worthiness depended on its performance as reflected in its share prices. Enron was a corporate superpower. One of the reasons why people felt safe investing in Enron was its size and the inelasticity of its main product – the buying and selling of energy. Energy is a necessity and the quantity demanded will not change much if at all due to higher prices. The energy
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The NYSE, also known as the New York Stock Exchange, was formed by twenty- four New York City stockbrokers, in 1792. (Money-Zine, (2012). For a company to be listed in the NYSE, it must have in excess of 2,200 shareholders, and have an average daily trading volume of at least 100,000 shares. In other words, the company has to be big, very profitable, in order to be listed. NASDAQ is another well known stock exchange. It was developed in 1971, and is the first electronic stock exchanged in the world
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reached a crescendo in the aftermath of the Enron bankruptcy. “Where were the auditors?” This question has been much asked since Enron, with almost no warning, sought bankruptcy protection a mere four weeks after its announcement of the need to restate its financial statements. The follow-up question: “How could this happen to a company that had received an unqualified auditor’s opinion on its historical financial statements for so many years?” The Enron and WorldCom scandals have alerted the financial
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Economic Consequence Consideration ATG 563 - Advanced Accounting Theory February 14,2012 Should economic consequences be considered by the FASB in the accounting standard setting process? Yes, the FASB should consider economic consequences in the accounting standard setting process. Ever since the creation of the FASB in 1973, it was charged with establishing standards of financial accounting and reporting in the most efficient and complete manner possible. The goal of the FASB is to maintain
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corporate governance and restore investor confidence. It was sponsored by US Senator Paul Sarbanes and US Representative Michael Oxley. The act was passed in response to a number of major corporate and accounting scandals, the most popular being Enron, in the United States (audit-is.com/legislation/sox.htm, 2011). As a result of Enron’s scandal and public bankruptcy, congress passed the act which required all public companies that have business in the United States to have an accounting framework
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Running Head: ENRON CORPORATION Enron Corporation July 20, 2011 Based in Houston, Texas, Enron Corporation was an American energy, commodities and service company. Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth. Enron employed approximately 22,000 employees and was one of the world’s leading electricity, natural gas communications, and pulp and paper companies before its demise in late 2001. For six consecutive years, Fortune named Enron "America's
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(CBS) The stock markets got another king-sized jolt Tuesday as WorldCom revealed what could turn out to be one of the biggest accounting scandals in U.S. history. The telecommunications company said it had fired Chief Financial Officer Scott Sullivan, and accepted the resignation of senior vice president and controller David Myers, after an internal audit found improper accounting of more than $3.8 billion in expenses over five quarters. The misstated billions are also very bad news for ordinary
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Enron and Arthur Andersen Accounting Scandal The Enron accounting scandal resulted in a loss of reputation to Arthur Andersen which was a result of fraudulent financial statement reporting. Crimes discovered included irregular accounting procedures which could be turned in as fraud which involved Enron and Arthur Andersen as its accounting firm. They were found to have committed wire fraud, security fraud, making false statements to banks, creating several “independent” companies, called “Special-Purpose
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Within the last ten years corporate scandals such as Enron, WorldCom, Tyco, etc., triggered Congress to pass the Sarbanes-Oxley Act of 2002 (Ross, Westerfield, & Jaffe, 2010). False reporting of financial transactions was the number one commonality in all the scandals. In every case, shareholders of the companies suffered hefty losses due to the misrepresentation of the transactions. Almost $11 billion was lost by the shareholders of Enron (Blackburn, 2002). WorldCom shareholders lost about $194
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