and cash flow were swayed and clearly inflated. This misled investors. The above are just to name a few contributions to Enron’s downfall. 3. What was the prime motivation behind the decisions of Arthur Andersen’s audit partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public interest or something else? Cite examples that reveal this motivation The prime motivation behind the decisions of Arthur Andersen’s audit was profit and greed and was not in the best interest
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Sarbanes-Oxley Act (SOX) ACC290 March 29, 2012 Sarbanes-Oxley Act (SOX) The Sarbanes-Oxley Act (SOX) was created on July 2002 after numerous financial scandals involving companies such as Enron and WorldCom. The main section of the act which is section 404(a) requires management to provide the financial reporting accurately and effectively. This is called Internal Control over Financial Reporting (“ICFR”). There are several sections that have been created to assure the accuracy of the financial
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responsibility the organization has to the greater good of the overall society that it operates in. While profits are always the main goal of an organization it cannot be the only driving force of an organization. This would lead to immoral and unethical decisions, which will ultimately result in a lose-lose scenario for both the organization and society as a whole. Strategic plans should consider all the stakeholders’ needs, ethics, and their overall social responsibility. Stakeholders can be considered
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Impact of Unethical Behavior Shavonne Ware February 12, 2012 Acc/291 Mrs. Adkins The Sarbanes-Oxley Act of 2002, also known as SOA, was passed due to the accounting scandals at Enron, WorldCom, Global Crossing, Tyco and Arthur Andersen, that resulted in billions of dollars in corporate and investor losses. These huge losses negatively impacted the financial markets and general investor trust. The Sarbanes-Oxley Act mandates a wide-sweeping accounting framework for all public companies doing
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mattered in a significantly negative way for the people of New Orleans and Louisiana. On the other hand, some may argue that a focus on results and success breeds corruption. These individuals may point to examples of corporate fraud such as Enron or WorldCom. However, a crucial benchmark of success that every
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Organizations of any other sort than SP’s and LLC’s are under the scrutiny of The Sarbanes Oxley Act. Sarbanes-Oxley Act of 2002 was basically established to deal with unethical behavior and corporate social responsibility issues. This law was established to enforce accounting auditing and to protect investors. Companies like Enron and WorldCom scandals made it imperative for Congress to pass such a law to protect Investors, Corporation Employees, etc. This Act was not favored by a lot of organizations
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The problem to be investigated in this assignment is the ethics of institutions. Are businesses operating in an ethical or unethical manner? Goldman like many other operations use behaviors that were unethical and grossly unfair to clients. Shaded areas are areas to be defined by the individual interpretation itself. Many say money is the root to all evil and as this case dictates, true. Ethics should always be at the forefront of any organization. Operating a business requires adequate consideration
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pick up any American newspaper and avoid reading an article dealing with the unethical and possibly even illegal conduct of those who run our businesses. Whether it is insider stock manipulation, off balance sheet partnerships, questionable accounting practices, dumping of environmental contaminants, the stories continue to appear. One might wonder how such gifted, highly; savvy organizations such as Enron, Tyco, and WorldCom got themselves in such of a big mess! “Business ethics should be
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because of the pressure on corporate executives by shareholders, creditors and other parties affected by financial performances. It is therefore not new that a study of management companies found that nearly three-quarters of respondents felt that the unethical behavior such as personal trading, insider trading and fraudulent financial reporting are areas of high interest. Expectations of high standards of ethical business behavior are rising; companies are exposed to legal and economic sanctions for the
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documentary defines a corporation as a legal person, explaining that is has most of the legal rights a person has such as borrowing money and managing property. The film was released around the time of major corporate scandals, such as Xerox, Enron, and WorldCom, and uses the metaphor “bad apples” to state that there are more than a few corporations that are bad. The film argues that if corporations were people, they would have psychopathic personalities. It then states that corporations have become a vessel
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