out on the whole corporation. From the beginning of 1999‚ to May of 2002‚ WorldCom had been hiding the declining earnings of the company by using fraudulent accounting methods. This posed a false picture of the financial growth‚ so that WorldCom’s stock would go up‚ when it should have really been going down. In June of 2002‚ some of the fraudulent accounting had been recognized‚ which resulted in the firing of Sullivan‚ the resignation of Myers‚ and the
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series of other fraudulent accounting practices occurred during the following years. In December 2003‚ Parmalat was not able to make a U$ 150MM bond payment and raised the attention of the entire market. When the fraud was brought up‚ Calisto Tanzi (Parmalat founder) and Fausto Tonna (CFO) was arrested along with another 10 individuals. Grant Thornton and Deloitte & Touché were Parmalat’s accounting firms during the last 2 decades. Partners of both firms were charged for fraudulent activity. Case
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the term misrepresentation is defined by the UAE law differently than the English law. According to article 185 of the Civil Code‚ UAE defines misrepresentation as “Misrepresentation is when one of the two contracting parties deceives the other by fraudulent means by word or act which leads the other to consent to what he would not otherwise have consented to”; in English law‚ misrepresentation refers to “The issuance of a false statement or information which acts as the basis for the other party to
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Unethical Practices and Behavior in Accounting The Sarbanes-Oxley Act of 2002 (SOX) was created to prevent fraudulent financial activities‚ and to provide investors with more accurate financial resources on corporations. Under SOX‚ companies are held accountable if they fail to maintain the requirements that were set forth in the act. The act requires companies to maintain satisfactory internal control measures‚ provide responsible financial reports‚ disclose periodic reports‚ and establish rules
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The Black Death is one of the most notorious pandemics known to date. Spreading throughout Central Asia and Europe in only a few years‚ around 75 million people fell victim to the plague Scientists discovered that the bacterium to blame was called Yersinia pestis. Yersinia originated from one of its founders – Swiss microbiologist Alexandre-Émile-John Yersin‚ and pestis being Latin for plague or pestilence. How it Spread At the time of the Black Death‚ it was unknown what the cause of the plague
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Identify the strengths and weaknesses of discretionary accruals models to identify earnings manipulation: Discretionary Accrual = non-obligatory expense (such as an anticipated bonus for management) that is yet to be realized but is recorded in the account books. Accrual Accounting = an accounting measure that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized
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Cited: Bouchillon‚ Kevin. "Ethics in Auditing." Price Waterhouse Coopers. Guest Speaker. Pullman‚ WA. 10 Apr. 2008. Gerard‚ Lange A. "Fraudulent Financial Reporting." Answers.Com. 07 Feb. 2008 <http://www.answers.com/topic/fraudulent-financial-reporting?cat=biz-fin>. Livingstone‚ Les. "Fraudulent Financial Reporting." Connexions. 2007. 02 Feb. 2008 <http://cnx.org/content/m14318/latest/>. Madura‚ Jeff. What Every Investor Needs to Know About Accounting Fraud. New
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The Business School | | Assignment Topic Due Date: Friday‚ noon‚ of week 8 Semester Two 2012 word count:1470 words 1.in this situation‚ first we need to identify if there is a legal binding contract‚ a contract is a agreement which the law will enforce‚ a contract is a part of common law‚ common law is also called custom law‚ it is made by the judge to protect the community against the crimes‚ when an issue goes to court and there is no statue law that covers it‚ a judge will hear the case
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WorldCom: Organizational Culture and Unethical Safeguards Organizational culture is one of four influences whether an ethical or unethical behavior will be made. WorldCom’s demise‚ deliberately overstating their income by $7 billion between 1999 and 2002; and their once valued stock of $180 million becoming nearly worthless‚ can attribute a significant amount of their failure on their “dis”organizational culture. Corporations worldwide who do not think this type of fraud can happen at the hands
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of the disclosure‚ including the consequences of non-disclosure. An insurance company who has no compiled with the section 22 of the Insurance Contracts Act may not exercise any rights in respect to non-disclosure unless the non-disclosure was fraudulent [S22 (3)]. Consumer`s Responsibility: According to the Insurance Contracts Act under the section 21‚a consumer is required to disclose all matters known to them that they know to be relevant to the
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