fairly evident. Corporate scandals such as Enron and WorldCom devastated entire corporations as well as national and world financial crisis created by banking and mortgage industries. The government has stepped in and enacted legislation such as Sarbanes-Oxley in an attempt to prevent future occurrences, but is this going to be enough? Corporate governance requires self-regulation and ownership and the decisions of a few that could potentially affect thousands needs to be subjected to a formalized review
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9. The Sarbanes-Oxley Act requires only that a firm keep good records. ANS: F PTS: 1 10. A key modifying assumption in internal control is that the internal control system is the responsibility of management. ANS: T PTS: 1 11. While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients, they are not prohibited from performing such services for non-audit clients or privately held companies. ANS: T PTS: 1 12. The Sarbanes-Oxley Act requires
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Multiple Choice Questions (3pts each) 1. Select the best definition of whistleblower: a. the sole goal of modern ethics training b. originated from the Latin "qui tam pro domino rege quam pro sic ipso in hoc parte sequitur" meaning "who as well for the king as for himself sues in this matter." c. a narrow exception under the general rule of at-will employment d. people who report unethical or illegal activities under the control of their employers ANSWER: D 2. Under the legal doctrine of
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Business ethics are a pivotal aspect in strategic business finance, or finance in general. Poor ethical practices and immoral acts have been conducted across many years by many individuals and businesses in the business world in regards to finance. This paper will focus on two of the more well-known ethical issues that occurred in the late 1990s and early 2000s, Enron Corporation and WorldCom. This paper will focus on the factors that led to the demise of the corporations, as well as the violations
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Quiz # 1 Note’s Chapter # 1-3 Business Ethics Chapter # 1 1. Why Business Ethics? * Business decisions under great scrutiny Global financial crisis created diminished stakeholder trust Deals with questions about whether practices are acceptable No universally-accepted approach for resolving issues 2. Business Ethics * Comprises principles, values, and standards that guide behavior in the world of business 3. Principles: Specific boundaries for behavior that are universal and
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1. (Whitman & Mattord, 2011, p. 114) What is the difference between law and ethics? The difference between law and ethics is that law is a set of rules and regulations that are universal and should be accepted and followed by society and organizations. Ethics refers to the beliefs and customs that help shape the character of individuals and how people interact with one another 2. (Whitman & Mattord, 2011, p. 114) What is privacy in an information security context? It refers to how the info
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Economics of Water Abstract Government regulation is needed in today’s industry. While this paper will look at the governance of the economics of water it will start with a brief introduction of the reasons why government regulation is something that the shareholders’ of a corporation should embrace and should ignore the hype from management, media, and academia about why governance is wrong. They tend to mistakenly call all decisions as opportunistic behavior whether it is ethical or not
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The Insider is a documentary of an ex-company executive that wanted to reveal his company’s best secret to a 60 minute program produced, L. Bergman. Wigand was a high salaried executive at Brown &Williamson Tobacco Corp in Louisville, KY, owned British American Tobacco. He worked as a scientist in the research and development field for the # 3 tobacco company in the world. In 1993 he was dismissed due to his resistance of company’s use of a potentially dangerous pipe tobacco additive. When Wigand
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grabbing scandals involving major corporations. These scandals have raised new questions about corporate governance and, as a direct consequence of some of these situations, the U.S. Congress passed a very broad piece of legislation called the Sarbanes-Oxley Act of 2002. This law has had a wide range of consequences directly affecting large public corporations and public accounting firms and, less specifically, smaller public firms, private corporations, not-forprofit organizations and regulatory
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Case Study 1: Enron The story of Enron is one of corporate greed and intense competition. Former Enron executive Jeffrey Skilling appears to be the person that created such competition between employees. He created a system where employees are ranked every six months, the employees ranked in the bottom 20% were forced out of the company. This ranking system led to a belief that high performance meant everything to the company. Ethical behavior was falling by the wayside at Enron and top
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