Columbia Law School The Center for Law and Economic Studies 435 West 116th St. New York‚ NY 10027-7201 Working Paper No. 207 Understanding Enron: It’s About the Gatekeepers‚ Stupid John C. Coffee‚ Jr. July 30‚ 2002 This paper can be downloaded without charge from the Social Science Research Network electronic library at: http://ssrn.com/abstract_id=325240 An index to the working papers in the Columbia Law School Working Paper Series is located at: http://www.law.columbia.edu/law-economicstudies
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Sean Russi The Case of Phar-Mor Inc ACCT-525 October 31‚ 2012 Case Summary The case of Phar-Mor Inc was one of the biggest pre-Enron frauds that have been uncovered. Phar-Mor Inc established in 1982 Phar-Mor was a small little known discount drugstore. Phar-Mor became well known for offering medications at a 25-40% discount rate compared to your normal pharmacy store prices. Phar-Mor’s first six years of existence seemingly were
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Waste Management The Securities and Exchange Commission has filed suit against the founder and five other former top officers of Waste Management Inc. for massive fraud. The complaint charges the defendants with inflating profits to meet earnings targets. The officers named in the complaint include the following: * The CEO‚ who set earnings targets‚ fostered a culture of fraudulent accounting‚ personally directed certain of the accounting changes to make the targeted earnings‚ and was the
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Earnings management is typically regarded as a bad thing. I will cover why it’s considered a bad thing‚ and what it entails. When an executive “cooks the books” it’s referring to them providing false information in order to deceive other important employees or shareholders. This act includes‚ but is not limited to: falsifying receipts‚ inventories‚ balance sheets‚ and/or cash flow statements. This is an important concept to familiarize yourself with because‚ if identified and stopped in time‚ could
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Enron is what made the researcher very interested in the topic. The Enron scandal‚ revealed in October 2001‚ eventually led to the bankruptcy of the Enron Corporation‚ an American energy company based in Houston‚ Texas‚ and the dissolution of Arthur Andersen‚ which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time‚ Enron undoubtedly is the biggest audit failure. Young as I am
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Table of Contents IntroductionPage 3 Ethics Corruption in the United StatesPage 3 Corruption and the OlympicsPage 6 Corruption AbroadPage 7 Affects of CorruptionPage 8 Anti-Corruption Strategies Page 10 ConclusionPage 11 Back Up Materials Transparency International‚ Global Corruption Report 2001Tab 1 Time Trail Article: Italy‚ The Mani Pulite ScandalTab 2 Economic Perspectives 1998‚ View from Stuart EizenstatTab 3 Promoting the Rule of Law and Anti-Corruption in a Globalized Economy
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investors. The Board failed to exercise prudent judgment‚ failed to challenge management when necessary‚ and‚ as a result‚ failed to adequately protect the interests of the shareholders. 9. Identify the conflict of interest in: SPE activities‚ Arthur Andersen’s activities‚ and Executive activities. The conflict with the SPE was that Enron was keeping their losses off of the end of year reports to offset other dealings that were not profitable. If true numbers had been reported losses would have
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energy giant Enron Corporation was forced to file for bankruptcy in December 2001 amid allegations that the company’s financial statements were deliberately misleading and false. Enron’s bankruptcy not only destroyed that company‚ but its auditor Arthur Andersen as well. More recently‚ in late 2006‚ without admitting wrongdoing‚ Hewlett-Packard agreed to pay $14.5 million to California to settle the company’s “pretexting” scandal. The scandal began when a board member complained that confidential information
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frauds are decreasing year after year. Current business and regulatory environment have been affecting avoid from accounting fraud. 1.2 Before Enron scandal‚ organization was not allow to control relation between company and account firm. Arthur Andersen‚ is an accounting firm‚ winked at Enron accounting fraud. Thus the biggest accounting fraud was accrued in the history. (Kandemir‚ C.‚ & Kandemir‚ S.‚ 2012‚ p.106) Because of Enron fraud loss‚ according report of Association of Certified Fraud
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worst examples. Waste Management Scandal (1998) Company: Houston-based publicly traded waste management company What happened: Reported $1.7 billion in fake earnings. Main players: Founder/CEO/Chairman Dean L. Buntrock and other top executives; Arthur Andersen Company (auditors) How they did it: The company allegedly falsely increased the depreciation time length for their property‚ plant and equipment on the balance sheets. How they got caught: A new CEO and management team went through the books.
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