RISE AND FALL OF ENRON, WORLDCOM, HEALTHSOUTH, AND TYCO INTERNATIONAL David R. Lease, Norwich University Abstract This paper presents an analytical and comparative study of four recent corporate scandals involving organizations that had previously been recognized as both ethically and organizationally sound. Based on these case studies, the following issues are discussed: (1) The role of leader behavior and organizational/leadership styles in shaping the corporate organizational culture of an organization
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of the Act are titles 302, 401, 404, 409, 802 and 906. The main premise of this paper is to investigate one of the most challenging aspects of SOX’s regulations - a company’s responsibility for implementing effective internal control – as described in Section 404. Role of the Internal Control in the Financial Reporting and Section 404 The requirements of the
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Sarbanes-Oxley In Week 1 we studied the general importance of the "rules of the game" (property rights and the rule of law) to a well-functioning economy. This week, we focused in more closely on the "rules of the game" regarding corporate governance and financial reporting. The Week 6 topic of fraudulent financial reporting relates to corporate top management that enriches itself and abandons its obligations to shareholders, employees, creditors, government, and the general public. The Agency
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all accounting practices. Financial management aides and guides health care accounting practices in today’s health care settings. These two elements are the building blocks for a solid health care organization. Without the two, there is risk of fraud and unethical practices within health care. In financial accounting there are four elements of financial management. The first element is planning. In the planning element of financial management, the objective is determined and then the steps needed
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evidence collected. (Taylor, 2008). Inherent risk (IR) represents the auditor’s assessment of the susceptibility of an assertion to a material misstatement assuming there are no related internal controls. (Boynton, 2001). If the auditor concludes that there is a high likelihood of misstatements, ignoring internal control, the auditor would conclude that inherent risk is high. Factors that affect the auditor’s assessment of inherent risk. As inherent risk increases, PDR decreases, which in turn increase
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theft, also called identity fraud, as “all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain” (U.S. Department of Justice, 2015). Identity thieves use personal data such as Social Security numbers, bank account or credit card numbers to personally profit at the victim’s expense. These breaches allow thieves to take funds out of bank accounts or in the worst cases, take over a victim’s identity
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a company's financial statements to determine if they should invest in the company. The government uses the company's financial statements to track economic progress of businesses and to determine the correctness of the company's tax returns. Internal auditing is one of the first defenses a company has against fraudulent
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lack of management oversight and other acts of fraud. In 2002, Congress passed the Sarbanes-Oxley Act of 2002, also known as (SOX) to help circumvent these issues as it was having a devastating impact on the world economy. This legislation, specifically section 404, changed the face of how publicly traded companies handle their financial matters and the role of executive leadership within the organization in regards to the management assessment of internal controls. This is interpreted by the U.S. Securities
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can now collect, analyze, and respond to data has added a new dimension. Amazon, for instance, uses a dynamic pricing system that crawls over the Web, checks competitors’ prices and product availabilities, and changes the prices on Amazon, in some cases every fifteen seconds. Amazon can collect data from every visitor, every click, and every interaction, which collectively are known as structured data, and it can also collect reviews or evaluations from consumers or their social media posts. A
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Forensic Accountants: Fraud Busters Strayer University Business 508 August 11, 2013 Abstract The paper will determine the five important skills a forensic accountant must possess and describe their role within a courtroom environment. It will also analyze the legal responsibility of the accountant while serving its clients business. Giving two examples where a forensic accountant played an important role in aiding attorneys in presenting fraudulent bookkeeping records of company’s
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