information in regards to liabilities, bribery, manipulation of financial markets, and lastly inside trading. According to Osanyin 2008 “Two well-known examples of unethical practices in accounting are those of the 2002 Enron / Andersen and the WorldCom scandal. Both of these companies were involved in unethical accounting practices.” Although Enron was alleged of a massive number of under the tree type dealings that included covering debts in order to keep them from being reflected on the company’s
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and Investor Protection Act of 2002 and commonly called SOX or SarbOx; July 30, 2002) is a United States federal law passed in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, and WorldCom (now MCI). These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D–Md.) and Representative Michael G. Oxley (R–Oh.), the Act was approved by the House by a vote of
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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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and maintaining the confidence of the investors. Unfortunately, we are not learning from our past mistakes. History shows us that after every crisis, e.g the great depression of 1929, economic downturn of 1988, dotcom bubble of 2000, Enron and Worldcom issues, and finally the subprime mortgage crisis, there has been a need to appoint boards which recommended changes mostly pertaining to the accounting areas. Accounting professionals are constrained in providing information from data provided
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Forensic Accounting The accounting profession as we know went through many changes as a result of scams such as the Enron and WorldCom. It came stated as a clear fact that since these scandals had unfortunately happened, it would create a new demand for forensic accountants. The Association of Certified Examiners said that occupational fraud losses cost organizations on the average of about a trillion dollars yearly. I feel with this being a known fact brings along the push for the services of
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ESAMI EXECUTIVE MBA ASSIGNMENT FOR ELIJAH S. DLAMINI INTAKE 27 MBABANE COURSE: CG601 STUDENT ID# 27EMB12312 INSTRUCTOR: MR G. KACHALI TOPIC DISCUSS THE NEXUS BETWEEN CORPORATE GOVERNANCE AND PREVENTION OF FRAUD AND CORRUPTION IN THE WORKPLACE This paper will discuss the relationship between corporate governance and prevention of Fraud. One can safely argue that corporate governance is a medicine to cure corporate fraud in an organisation. The systems, procedures and policies set by
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FINA310-1301A-05 Financial Management UNIT 1 IP NASDAQ VS NYSE SHANIKA BUCKNER AIU ONLINE Introduction The purpose of this paper is to inform a group of stock brokers about the NYSE and the NASDAQ. In this paper I will explain the similarities and the differences of the NYSE and NASDAQ stock exchange. Also in my own words, I will explain what the Public Company Accounting and Investor Protection Act of 2002 are for. BODY Although NASDAQ AND NYSE operate differently, they both have many
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OUTSOURCING: THE EXPLOITATION OF CAPITALISM AND ITS’ IMPACT ON THE UNITED STATES ECONOMY The United States is a nation that was built upon and flourished due to industry. The Industrialization of the United States made it one if not the most powerful and prosperous nation of the 20th century. However, over the past 30 years the U.S. industrial market has been in a consistent decline. World events and technological advancements have combined to drastically change the course of how business is
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with fear, stress, long trials, and depression. The news stations were calling her a whistleblower, even though she was just doing her job. Because she did her job, she costs the jobs of thousands of people. After the press release that certain WorldCom transfers were not made in accordance with generally accepted accounting principles, the company laid off 17,000
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Arthur Andersen: Questionable Accounting Practices Steven Young Strayer University Business Ethics: Ethical Decision Making and Cases Dr. Mary Tranquillo November 13, 2012 Arthur Andersen: Questionable Accounting Practices p1 Arthur Andersen, one of the largest accounting firms in the United States, “a name that was synonymous with trust, integrity, and ethics” (Ferrell, Fraedrich, & Ferrell, 2011, p. 348), through a loss of
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