Case: Independent Study Correlation does not imply causation. It was one of most popular phrases in the Statistics class. Recently, I read an article and enjoyed the statistical practices in accounting discussions. The article is “SEC’s New Focus on Accounting Fraud” written by Jonathan B. MacKenzie (http://www.law360.com/articles/460715/sec-s-new-focus-on-accounting-fraud-what-s-on-its-radar). Accounting fraud cases brought by the SEC have been decreasing in recent years. As shown in the
Words: 817 - Pages: 4
Ethics in Management Accounting What are ethics? According to the Merriam-Webster dictionary, ethics are defined as, “Rules or behavior based on ideas about what is morally good and bad.” Ethics are rooted in an individual or an entire group’s moral values that govern daily behavior and crucial decisions. From a professional perspective, ethics provide a given quality and ensures a fair practice. In terms of business, it is the moral duties and obligations that apply to various professions and their
Words: 2682 - Pages: 11
Effects of Unethical Behavior Article Analysis Effects of Unethical Behavior Article Analysis Sarbanes Oxley Act was established in 2002, mandating organizations large or small to follow. “The Sarbanes Oxley Act has introduced major changes to the regulation of financial practice and corporate governance” (Sarbanes-Oxley Essential Information, 2012). The act has also changed the way financial statements have to be reported. In a Post Sarbanes Oxley Era companies need to adapt to become
Words: 485 - Pages: 2
College of Business and Accountancy Notre Dame University Cotabato City Good Governance and Social Responsibilities Management OO6 Jasmayra A. Salem BSAct-3 1st semester, 2014-2015 October 2014 Operation GRILL RITE I. SUMMARY Grill Rite is an old-line company that started out making wooden matches. The company entered the electric barbecue grill market with five models of grills and it sells nationally. The plant where the company produces barbecue sets is located in a small
Words: 4722 - Pages: 19
1.What were the individual factors that contributed to the failure of Enron? Briefly explain two key factors. The first individual factor is their greed. They became so greedy wanting more and more while running the company. The executives did massive fraud and insider trading in order to get more profit because of their self-interest. if they can keep their self-interest to themselves, enron can become one of biggest company in this world, but they did all of criminal acts only thinking of the
Words: 559 - Pages: 3
Sarbanes- Oxley Act of 2002 The Sarbanes-Oxley Act has many different effects of interest to financial service professionals in the business world. This act increase the reliability for financial statement information that financial specialist can use to get a better understanding of the financial picture of the company. Also Sarbanes-Oxley helps financial professionals look into certain conflicts of interest in companies involved in security research and investment banking. The Act mandates disclosure
Words: 774 - Pages: 4
Here is the logo for Enron Corporation, and it was called “titled E”, but on the end it became the Crooked E and finally was auctioned off with other company assets. In April 2001, Fortune magazine called Enron, the 7th largest company in the USA and 6 months later Enron filed for bankruptcy Enron was born in the middle of recession in 1985, when Kenneth Lay (Economist and undersecretary at US interior dept), who was the CEO of the Houston Natural Gas Company, engineered a merger with Internorth
Words: 1288 - Pages: 6
the act was a result of the continuous increase in the number of accounting scandals that can be related to falsification of entries on company’s financial statements. Some of the recent examples of corporate and accounting scandals were that of Enron, Adelphia, Tyco International, World Com, and Peregrine Systems, among others (Levine, 2013). The objective of this paper is to focus on and analyze one of such scandals. In this paper, the Lehman Brothers’ issue with the SEC regarding their malicious
Words: 1182 - Pages: 5
celebrity persona such as Steve Jobs, Bill Gates, and Jack Welch. The fact of the matter is their pay is driven by market forces. You don't really hear of athletes being scrutinized like CEOs. However, since the collapse of companies such as Enron, WorldCom, and Tyco, their exposure has put them in the forefront of our society. CEOs are not unique. Other industries with similar backgrounds have earned just as well in the last decade. This includes top lawyers, athletes and top financial
Words: 1987 - Pages: 8
Legality and Ethicality in Financial Reporting In week3, we are looking into the case of Excello Telecommunications, and study their behavior base on the knowledge of legality and ethicality in financial reporting. Excello Telecommunications has been successful in the past. However, in recent years, the company is facing more and more competitors. For the first in the company’s history, the earnings estimate won’t be met. This means nervous investors and drop in value of Excello stocks. And the
Words: 1114 - Pages: 5
