different perspective to work in. Enron is a good example of a company overstepping ethical boundaries for stakeholder’s agendas. Enron, the natural gas pipeline company held a conference in Houston for Wall Street investors and analysts. The audience includes the financial experts on the natural gas and power industries for the talk of Enron’s capabilities for its rapidly growing business of numerous commodities such as electricity, and network bandwidth (The Enron Scandal). The Enron’s president
Words: 580 - Pages: 3
Financial Management Financial Management of Health Care Organizations Michele R. Belton HCS/405 1/16/2012 Joseph M. Shin Financial management requires four elements in financial accounting reporting. These elements are thought of as a set. These elements include a balance sheet, a statement of revenue and expense sheet, a statement of fund balance or net worth and the statement of cash flows. A balance sheet keeps record of what a company owns, what the company owes and what the company
Words: 955 - Pages: 4
developing a strategic plan while considering stakeholder needs and agendas. This paper will discuss the Real Estate sector of the United States’ economy as well as a well known company called Enron, and its questionable overstep into unethical practices on various levels that brought forth government interference. For Enron, it is through the Sarbanes-Oxley Act (SOX) that all businesses are measured to prevent and avoid unethical situations from taking place. The Role of Ethics The role of ethics and social
Words: 945 - Pages: 4
Sarbanes Oxley Act has had many positive impacts on American businesses, but has also had its share of criticism. As a result of the implementation of the Sarbanes Oxley Act, firms now produce financial information that is more transparent and holds some form of accountability. One of the greatest benefits of the Sarbanes Oxley Act is that investors are more confident because they now have access to more accurate financial statements and are able to assess the financial strength and stability of
Words: 309 - Pages: 2
HealthSouth: The Scrushy Way Vonetta M. Henderson Northcentral University Introduction The Enron and Tyco scandals brought visibility to corporate scandals. The magnitude of these scandals resulted in the Sarbanes-Oxley (SOX) Act in 2002. Richard M. Scrushy and HealthSouth Corporation were the first CEO and company to be indicted under the SOX Act. HealthSouth was charged with filing false financial statements with the SEC to hid poor financial conditions
Words: 1035 - Pages: 5
One of the most high-profile auditing scandals in recent times is the one involving the Enron Corporation, an American energy company based in Houston, Texas. The scandal came out in the open on 12 October 2001 due to the non-transparency of the company’s financial statements. The financial statements did not clearly reflect its operations and used accounting loopholes. Its poor financial reporting allowed Enron to cover up billions of dollars in debt from failed projects and deals. Enron’s auditor
Words: 1380 - Pages: 6
workers with access to financial records within the company, vendors, and the company’s clients. The Sarbanes-Oxley Act of 2002 had a major impact on internal controls. It was enacted after major scandal was uncovered by corporate giants such as Enron, Tyco International, and WorldCom amongst others. These scandals cost investors billions of dollars after the involved companies’ share prices fell, put thousands of people out of work, and greatly demoralized the nation’s trust in the securities market
Words: 1049 - Pages: 5
contributes to the efficient operation of securities markets, labor markets, commodity markets, and other markets. To illustrate, imagine the consequences of a breakdown in the integrity of financial report- ing. The Enron scandal provides a case in point. At the beginning of 2001, Enron was one of the most innovative and respected companies in the United States. With revenues of over $100 billion and total company value of over $60 billion, it was the fifth largest U.S. corporation based on market
Words: 340 - Pages: 2
vendor and using confidential company information. The ENRON collapse in November 2001 is an example of employee ethics gone wrong. ENRON had one of their employee’s audit company audit ENRON. This is a huge example of how ethics did not play a role in the compliance of the company financial environment. The ENRON scandal made the business and financial world rethink the laws or lack thereof, in place for businesses and their finances. ENRON was so far ahead of the game they were named America’s
Words: 1072 - Pages: 5
A Primer on Sarbanes-Oxley The Sarbanes-Oxley Act was declared a law in 2002 (Orin, 2008). The primary purpose of this new law was to convey meaning to restoring faith in corporate America’s financial endeavors (Orin, 2008). The Sarbanes-Oxley Act was meant to aid and protect investors, who suffered extreme losses because of corporations having poor financial performances, which was the case before the law was enacted (Orin, 2008). Distinctively, the Sarbanes-Oxley Act was meant to concentrate
Words: 1952 - Pages: 8
