Earnings Management Techniques used by Enron Enron's complex financial statements were confusing to shareholders and analysts. In addition, it’s complex business model and unethical practices required that the company use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance. Revenue Recognition: Enron was originally Services providing company such as wholesale trading and risk management in addition to building and maintaining electric
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ETHICS IN ACCOUNTING: THE WORLDCOM INC. SCANDAL Conf.univ.dr. Lucian Cernuşca “Aurel Vlaicu” University, Arad, str. Piaţa Sporturilor, nr. 10, bl. 25, apt. 7, 310167 Arad, Phone: 0730468534, luciancernusca@gmail.com What is ethics? What does ethics have to do with accounting? How does a scandal affect the business environment and the society? This article will explain just those questions by analyzing a “famous” fraud scandal: WorldCom Inc. The article discusses the chronology of events
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Enron and Organizational Behavior The book I chose to read for my book report was The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron by Bethany McLean and Peter Elkind. The book was published by the Penguin Group and copyright (C) Fortune, a division of Time Inc., 2003. The Smartest Guys in the Room is about Enron’s rise and fall. Enron was created in 1986 from a combination of InterNorth and Houston National Gas which is basically a natural gas pipeline company
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The Rise and Collapse of Enron: Financial Innovation, Errors and Lessons Elisa S. Moncarz* Raúl Moncarz* Alejandra Cabello** Benjamin Moncarz*** Abstract Recent collapses of high profile business failures like Enron, Worldcom, Parmlat, and Tyco has been a subject of great debate among regulators, investors, government and academics in the recent past. Enron’s case was the greatest failure in the history of American capitalism and had a major impact on financial markets by causing significant
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Cooking the Books ACC 201 Abstract The key to the article “Cooking the Books” is to cover the business ethics of an accounting manager ordering one of his accountants to falsifying a company’s accounting ledger. The Generally Accepted Accounting Principle of expense recognition was not followed. The accounting manager was attempting to commit fraud for personal gain, he does this by manipulating the books to show higher revenue in order to meet the volume for management bonus. The accounting manager
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------------------------------------------------- ENRON SCANDAL Enron’s Accounting Methods April 30, 2015 Acct 301-d02 LUO [Company address] April 30, 2015 Acct 301-d02 LUO [Company address] Melissa Vest Liberty University I. Introduction: Enron used many legal accounting practices to commit fraudulent accounting activities II. The genius, or ingenious, accounting methods Enron used: 1. Special purpose entities a. Synthetic leases b. FAS 140’s 2. Hedges
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International Accounting Scandals, by Michael J. Jones, the author provides several important topics with regard to identifying and also correcting fraud. Some of the areas that the author describes is understanding the fraud environment. He also advise creative accounting methods and procedures to redress the fraud. Finally, once those methods are used, the author suggest to identify the evidences to ensure that the accounting method actually fix the fraud issue. “Many scandals occurred because accountants
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Running head: WATERGATE 1 WATERGATE DEVRY UNIVERSITY ONLINE. OCTOBER 20, 2014 WATERGATE 2 INTRODUCTION Watergate is a word that will forever be connected to the 37th President, Richard Nixon. What started out as a botched robbery at the Democratic Reelection headquarters would later become know for bringing down the Presidency. The American public would be able to see and hear firsthand what actually occurred in the Whitehouse behind closed doors, because
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When you think of the Human Resources department of an organization what comes to mind? Human Resources can be considered as the overseer of an organization. This the department of an organization that is responsible that the policies, procedures, and ethics or the company are followed correctly. Through job evaluations and disciplinary actions human resources had to have known that something was going on. Their lack of reprimand caused the unethical actions to continue which in-turn can be said
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Ethics in the Corporate World ACC 557 Financial Accounting January 26, 2014 In today’s society, it seems that most companies are out to chase the almighty dollar and have little to no concern for the repercussions of their actions. In this paper, we will address five aspects of the corporate world and the ethical breaches that have been made in the last few years. The company that we will look at for examples is WorldCom. WorldCom was one of the companies that led to the creation of the Sarbanes-Oxley
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