well-educated and ambitious. They often start as wide-eye fresh graduates at large corporations of which profit-driven culture infiltrates all levels within. Some of them were even chosen as CFOs of the year: Andrew Fastow (Enron) and Scott D. Sullivan (Worldcom). So why do they turn out to be the thieves stealing from the economy $2.5 trillion per year? Weinberg argues that these people, like Pavlo, do not just wake up one day and decide to commit in a greed-inspired fraud. In fact, only 7% of perpetrators
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("Fcpa"). Unfortunately, the improvement in internal control systems was not enough to prevent added problems. In the late 1990s and early 2000s the media was full of news of accounting frauds and problems at companies such as Enron, Xerox, WorldCom, Global Crossing, and others. While Enron made $62 billion in assets, declared bankruptcy (Romney, Steinbart 201-202). In response to these problems, Congress passed the Sarbanes-Oxley Act of 2002 (SOX). SOX was intended to prevent financial
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Groupthink is a concept that was identified by psychologist Irving Janis. It refers to faulty decision-making in a group. Janis defines groupthink as: "a mode of thinking people engage in when they are deeply involved in a cohesive in-group, when the members' striving for unanimity override their motivation to realistically appraise alternative courses of action. Groupthink refers to a deterioration of mental efficiency, reality testing, and moral judgment that results from in-group pressures."
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This is a tool auditors could use to assess the integrity and ethical values of clients and better understand the ethical infrastructure (organizational elements that contribute to an organizations ethical effectiveness) of an organization. What unethical research behavior was involved? The article discusses how auditors maintain integrity and fulfill their responsibilities independently. Auditors should be aware of risks when dealing with clients such as, economic incentives, being hired to perform
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CEO’s from Enron, WorldCom, Tyco, Aldelphia Communications and Computer Associates along with several other executives have led to imprisonment for them all for unethical decisions that were made (Kinicki, Kreitner, 2009). No one is immune to unethical decision making. Making an unethical decision can cost a corporation or organization profits. It is estimated that $600 billion a year is lost in United States Companies from criminal behavior and unethical decisions (Kinicki
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Assignment I: Tainted Baby Powder Milk 1. Yes, I believe there has been some damage to Baidu.com’s reputation because there was a significant stock price drop from $308 to $110. Stock price drops usually are the result of a lack of confidence by the stakeholders in the future performance of the company. Lack of confidence can often be attributed to actions by a company that are revealed to the stakeholders. 2. Future reputational damage could be reflected by a lack of confidence of the stakeholders
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Running Head: Is Ethics The Main Reason For Accounting Scandals? Is Ethics The Most Important Reason Behind Years of Accounting Scandals? Joshua A. Williams DeVry University Is Ethics The Main Reason For Accounting Scandals? Ethics: Is It The Most Important Reason Behind Years of Accounting Scandals? Ethics is a term that refers to a code or moral system that provides criteria for evaluating right and wrong (Spiceland, Spe, Tomassini, 2007). An ethical dilemma is a situation in which
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Effect of Unethical Behavior Article Analysis Terra Postelle ACC/291 January 08, 2013 Bennie Clark Effect of Unethical Behavior Article Analysis The effects of the Sarbanes-Oxley Act of 2002 on financial statements are general guidelines as to how the information is gathered, calculated and presented to clients while enforcing their accuracy and legitimacy. Companies such as Enron, Tyco, Global Crossing, and WorldCom are just a few examples of corrupt business cultures, practices, and greed
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Mark Willis BUS 508 – Contemporary Bus November 15, 2013 Determine the most important five skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. As the annual price tag for fraud at American business soars to nearly $1 trillion, the demand for Certified Public Accountants that provide forensic accounting services has increased exponentially-
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ethics and the U.S. government’s outlook on controlling unethical and illegal behavior have varied. Although business ethics has been discussed for several decades, it has only come to the forefront in the past several years. This has been especially true over the past decade, with the enactment of the Sarbanes-Oxley Act of 2002 (SOX) to help protect employees and investors. CHAPTER 1: INTRODUCTION Over the past decade, Enron, WorldCom, and Arthur Anderson have been household names when discussing
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