who report and make known unethical and illegal actions taken by their employer. The employer could be a publicly traded or privately held company or a not-for-profit organization. The whistleblower may choose to release their findings and information uncovered within their own company or to outsiders such as the news media, law enforcement officials, or federal regulators. In every case of a whistleblower coming forward there is a shared desire to stop the unethical and possibly illegal behavior
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information to make informed, sound decisions about the company. The footnotes in the financial statements will disclose accounting policies regarding such things as revenue recognition, property depreciation policies, income tax and inventory accounting practices, Effects of foreign currencies, leases, stock options, and contingent liabilities are disclosed in other notes to financial statements. Increase in Disclosures Disclosures have increased due to complexity of business environments, the need for
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subject of conversation. In the past ten years, we have seen numerous situations associated with collaborative scams which have shaken the people's trust in businesses and also the general economic climate. A few of the many distinguish frauds are the WorldCom and Enron's scams and incidents such as these designed us all, as upcoming corporation professionals as well as market leaders, think about ethics and its particular function in the commercial world (Gross, 2010.) Organization integrity can be
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The standard setting process The recent, high profile accounting scandals shook the foundations of the capital markets. Financial reporting furnishes investors and other stakeholders with reliable and relevant information. In the short term unethical financial reporting resulted in loss of billion dollars, but in the long term the impact was even more severe: loss of confidence in financial reporting as reliable source of information. The following reforms aimed to restore investor confidence
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previous years, the creditors could assume, depending on how much of a loan he is asking for, he is adjusting his books. Also if he borrow more money than his business is qualified for, in the long run he will not be able to cover the debt. It’s unethical for ACME to do this even though companies have done it in the past. Reimers, J Financial Accounting: A Business Process Approach Powered By VitalSource Creditors analyze current
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Ethics Essay Nancy Castro Ethics 316 Ruth Embleton March 7, 2012 Ethics Essay Comparing and contrasting ethical theories helps one to understand ones guidance system, which helps or aides one through their decision-making process. “Each theory emphasizes different points such as predicting the outcome and following one's duties to others in order to reach an ethically correct decision.” (2011) each theory has a familiar thread with a goal. In this paper each of the following three ethical
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Moore, and by BBC), and news agency articles (Associated Press) and numerous academic research. The BBC documentary and the AP article were published as recent as in 2011. Though Nike took swift action against each crisis and claimed to curb the practices following each uncovered occurrence, people are in doubt of its social conscience. The Manager’s Notebook is quite right quoting Nike’s founder Phil Knight acknowledging that the “Nike products has become synonymous with slave wages, forced overtime
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and now were worth much less. Andy Fastow was the Enron executive who first created the company LMJ1 in order to hide unprofitable assets. It was the accounting firm of Arthur Andersen who was responsible for identifying and informing about unethical and possibly illegal activities by the company’s executives. However, “the original accounting treatments for the…LJM1 transactions were wrong…in spite of extensive involvement and advice from Arthur Andersen.”
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the managements own assessment of its financial reporting capabilities. Why the new enhanced standards are necessary Congress passed the Sarbanes-Oxley Act of 2002 in reaction to accounting scandals involving well-known companies like Enron, WorldCom, and Tyco that were inaccurately reporting financial information over a period of years. Through close relationships with accounting firms that amounted to conflicts of interest, these companies were able to perpetuate their fraudulent financial
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not receive as much television and news exposure as Enron and WorldCom, but the fraud the Rigas family had engaged in caused the company to sustain tremendous losses. Adelphia was considered a family owned business to the Rigas family members. John Rigas had dominant control over the company and used his power in the company to engage in fraudulent activity to maintain the extravagant lifestyle they were used to living. Their unethical behavior bilked the company out of more than $100 million dollars
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