What ethical issues arise in accounting and how can these be dealt with? For the last several decades, it is generally realized that ethical issues in accounting have become more and more crucial. Ethical issues influence accounting judgment and give a significant impact of the whole company. Currently, unethical behavior that occurs in accounting sector is very common. Ethical issues in accounting focus on accountants who work in public or private organizations. They must be following the ethical
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public accounting firms. It is named after sponsors U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH). The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation's securities markets. The Sarbanes-Oxley
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............................................................................................... 1 2. Summary of facts of the scandals at Enron ................................................................................. 1 3. Summary of facts of the scandals at WorldCom ........................................................................ 2 4. Enron and WorldCom executives prosecution ........................................................................... 5 5. Effects of the scandal
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“The Numbers Game” A Speech by SEC Chairman Arthur Levitt Article Review The article, “The Numbers Game” 1 is about the Securities Exchange Commission (SEC) Chairman, Arthur Levitt’s concern over earnings management. Specifically, he expressed during a speech at the NYU Center for Law and Business his distress over an evolving problem with a game played among market participants to manipulate their financial reporting numbers motivated by Wall Street earnings expectations. Chairman Levitt
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Corporate governance refers to the set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders in this case would include everyone ranging from the board of directors, management, shareholders to customers, employees and society. The
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The evolution of the culture of our corporations has evolved in many ways and for many reasons. There were many different factors that played an important role in developing the change in the evolution of corporations. Societal and cultural influences played a major role in the early development of the objectives and reason for existence of corporations. Political forces have and will continue to play an influential role in the structure of corporations and the responsibilities corporations have
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WorldCon: A Case Study of WorldCom ACCT 424B Prof. R. Hayes May 12, 2011 WorldCom is a telecommunications company that was once worth billions but is now merged with Verizon after bankruptcy due to fraudulent activities. The question is what caused one of the largest US corporations began a spiral into financial ruin. WorldCom according to John Sidgmore, a former top executive of WorldCom, stated that WorldCom generated annual revenues of over $30 billion a year, has more than 60,000 employees
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Enron Case 10.8.2014 Melissa Becker Boya Du Sidi (Fiona) Chen Wei (David) Yu In June of 2001 Enron’s new CEO, Jeff Skilling, was heralded as the “No. 1 CEO in the entire country and Enron was saluted as “America’s most innovated company.” Just six months later, in December, Enron filed for bankruptcy. The failure shocked the public and angered investors. How could this have happened? Did no one see this coming? Where were the accountants? Where were the controls? Enron’s public troubles
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take lots of risks which caused them to lose a lot of money, there by bringing down there previously good name. They did tax deals like Repo 105 and didn’t care if it was legal or not. 3) What role did Lehman’s executives play in the company’s collapse? Were they being responsible and ethical? Discuss. They were very stubborn, and displayed very bad conduct and poor judgment. Valuka’s report was highly critical of Lehman’s executives who should have done more, done better. He pointed
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EFFICIENCY AND SUCCESS OF GOVERNMENT REGULATIONS LaToya Wallace ac502-01 Regulation December 21, 2011 Efficiency and Success of Government Regulations Introduction Over the years, the US has seen and recovered from major financial setbacks. With the uncovering of each new company scandal, legislation has been swift to put ordinances and laws into place to prevent the same mistake from happening twice. Although some of the events majorly affected every American, some were swiftly and
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