capital budgeting. Procomp Informatic: Stepping on Ethical Landmines in Asia The collapse of Procomp Informatics Ltd, a major Taiwanese chipmaker, has been regarded by Taiwan's market watchdogs as similar to the scandal of the U.S. energy giant Enron in 2001. In June 2004, Procomp defaulted on a bond payment and structured for bankruptcy, despite a huge cash balance recorded in its books. It was discovered that the company's executives and its overseas sales agents had colluded in overstating sales
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Why Accounting Fraud? & Possible Solutions Brian Faanes Rasmussen College Author Note This research is being submitted on 9-12-2011 for Wendell Ellis A140 Financial Accounting 1 course at Rasmussen College by Brian Faanes Most accountants and auditors want to be accurate and honest when it comes to the recording of financial records and statements of the company or firm they work for. However, because of tight relationships between accounting firms and their clients, auditors may unintentionally
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……………………………………………………….4Introduction………………………………………………...…………………………………………5The importance of Ethics in Accounting…….……………………………………………………………………..6 Creative Accounting…………………………………………………………………………….…7 Accounting Scandals..……………………………………………………………………………………………………10 The Enron Scandal……………………………………………………………………………………..10 The WorldCom Scandal………………………………………………………………….…………..12The consequences of Creative Accounting……………………..…………………………………13Measures of Prevention……………………………………………………………………………………15Conclusion………………………………………………………………………
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current system of financial reporting is incapable of providing the information its users require to assign fair value to a firm. Much research has been conducted analyzing the problems inherent in the current state of financial reporting and many solutions have been proposed. As this paper intends to display, the level of information provided to the users of financial reports regarding intangibles acquired in mergers and acquisitions has improved significantly over the last decade, however little if
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the 10-year anniversary of the passing of the Sarbanes-Oxley Act of 2002 comes some controversy regarding whether the law has proved to be useful, or more of a headache for companies in the United States. Following the huge accounting scandal at the Enron Corporation, the Sarbanes-Oxley Act was passed to change the compliance behind how companies would report their financials. Being enforced by the Securities and Exchange Commission (SEC), the SOX helps monitor corporate governance, reporting of financial
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principle according to GAAP guidelines and would be looked at as an earnings management tactic, which is viewed as an unethical practice by the AICPA and GAAP. The CFO approaches his accounting department with the expectation that they come up with a solution to this problem. The accounting department is well aware of the rules and guidelines in place when it comes to revenue recognition, but as a team come up with three possible scenarios. One, to transfer this order to an offsite warehouse to hold
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on the state of the overall financial control system. (Wagmer & Dittmar, 2006) “The apparent motivation for the Sarbanes-Oxley Act was to combat the financial statement fraud problem that continues to plague the United States, as embodied by Enron, WorldCom, Global Crossing, and too many others. Simply stated, Sarbanes-Oxley takes direct aim at the perceived drivers of fraud by attempting to strengthen board and audit committee oversight, increase auditor vigilance and independence, strengthen
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University of New Hampshire University of New Hampshire Scholars' Repository Honors Theses Student Scholarship Fall 2012 An Analysis of Fraud: Causes, Prevention, and Notable Cases Kristin A. Kennedy University of New Hampshire - Main Campus, kaj79@wildcats.unh.edu Follow this and additional works at: http://scholars.unh.edu/honors Part of the Accounting Commons Recommended Citation Kennedy, Kristin A., "An Analysis of Fraud: Causes, Prevention, and Notable Cases" (2012). Honors Theses. Paper
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Research Paper Number One Nathan C. Fears, Student Kaplan University Abstract The perception of the financial and the accounting field over the past decade has been very poor in the eyes of the public. Especially after many recent scandals that have more then embarrassed the industry. The overall idea behind the field of accounting is for accountants to serve the public for the greater good. Yet the public doesn’t feel that accountants can be trusted. Hence
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includes its involvement in landfill gas-to-energy operations which is the capture and reuse of naturally occurring methane gas at landfill sites. Finally, the company provides street sweeping and parking services, portable self-storage, healthcare solutions services, services for third parties for construct waste facilities, and municipal, industrial, commercial, and residential trash and recycling services (Yahoo, 2010). Waste Management Inc.’s website offers a deeper look into the company’s bragging
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