Unethical Practices of Arthur Andersen 1.) I think that Arthur Andersen contributed a lot to the Enron Disaster. I think that it all started when AA became its own company. Because of this, the two companies became rivals. AA’s main focus was on revenues. The company did not care how things were done as long as it put money in their pockets. Also, from what I understand, the company made the auditors feel that if they were to say anything that would make the company lose a client, then the auditor
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Dangerous Women They fight with power, speak with persuasion and play with seduction. Their humor is cold and wet and they strive to make a name for themselves. They nurture and take care of their followers but they also make time to get down to business. Don’t worry, I knew what you were thinking, but this has nothing to do with any sort of political election, well almost nothing. For once this is about the women. For many centuries, women would seldom leave their houses. They weren’t tied up,
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EMBA - OT “GLOBAL LEGAL FRAMEWORK & STRATEGIES” INDIVIDUAL PAPER “ ENRON CASE” Name : Suharto NIM : 13262051 “ Analyze Enron’s Case as PTCV according to the 5 Theory in and Relation to Act no 40/2007” Executive Summary Piercing the corporate veil is the judicial act of imposing personal liability on otherwise immune corporate officers, directors, and shareholders for the corporation’s wrongful act (Black Law Dictionary). In other words, courts may pierce the "veil" that the law uses to divide
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Journal of Economic Perspectives—Volume 17, Number 2—Spring 2003—Pages 3–26 The Fall of Enron Paul M. Healy and Krishna G. Palepu F rom the start of the 1990s until year-end 1998, Enron’s stock rose by 311 percent, only modestly higher than the rate of growth in the Standard & Poor’s 500. But then the stock soared. It increased by 56 percent in 1999 and a further 87 percent in 2000, compared to a 20 percent increase and a 10 percent decline for the index during the same years. By December
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reputation became tarnished. At the time the Securities Act of 1933 and the Securities Exchange Act of 1934 were passed the intent was to create accounting standards for publicly traded companies. However as time went by the accounting profession faced scandals and deceit. The immense pressure placed on auditors to generate new revenue by retaining existing customers and generating new leads, clouded their judgement about addressing inconsistencies and asking questions. Greed and the pressure to make a
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the nation's focus was shifted to the Enron scandal. Kenneth Lay and Jeffery Skilling were names in the press almost every day. Enron filed bankruptcy and thousands lost their jobs and pensions. Another company involved in the scandal was Arthur Andersen, an accounting firm; Enron was their client. Arthur Andersen continued to perform bad audits even after a warning from SEC. If Arthur Andersen employees had been ethical, after the warning, the Enron Scandal would not have had led to the conviction
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* NAFTA * H. Ross Perot * Rodney King * Immigration * Clinton’s Scandals * Wal-Mart * “Contract With America” * The technological divide * Disputed Election of 2000 The Clinton Recovery When President Nixon resigned in August of 1974, then Vice President Gerald Ford took over as President. President Nixon’s resignation was the first in Presidential history due to a scandal that is still considered controversial to this day. Termed “Watergate,” the break-ins
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Early morning on 18th of March 1990, two thieves dressed in Police uniform entered the Isabella Stewart Gardner Museum in Boston, USA and handcuffed the two guards removing them from the desk where they could alert the police. The pair stole 13 artworks worth 500 million US Dollars in just 81 minutes. Evidence shows that this heist may have been an inside job by the guards working at the museum. Richard E. Abath who was on duty that night has broken museum protocol 2 times before and let in unauthorised
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February 17 Discussion Question Christopher Suto 1. What is a VIE? An entity (investee) in which the investor has obtained less than a majority-owned interest, according to the United States Financial Accounting Standards Board. A VIE refers to an entity (the investee) in which the investor holds a controlling interest that is not based on the majority of voting rights. As long as the investee is not the primary beneficiary then they do have to consolidate the company on their balance sheet
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Accounting: Accounting Fraud at WorldCom Date: 1/26/2015 3. What are the pressures that lead executives and managers to "cook the books"? The CEO and CFO of WorldCom wanted to “cook the books” because they wanted to keep the company’s stock price growing. Managers and accountants “cook the books” because they are forced to do so by their CEO and CFO. WolrldCom CEO Ebbers believed that increasing the stock price is their number one priority, so he set up a goal for the corporation--“The
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