Introduction WorldCom was America ’s second largest telecom company in 2000 (The WorldCom Accounting Scandal‚ 2002). Making a modest beginning in the hinterland of Mississippi in 1983 with a meager capital of less than 100‚000 USD it reached the pinnacle of corporate success reporting more than USD 39 billion in revenue and USD 150 million in MCAP (The WorldCom Accounting Scandal‚ 2002). In the process it became 42nd in the Fortune 500 list. Under the leadership of CEO Bernie Ebbers it grew rapidly
Premium Corporate governance Management Accounting scandals
Content Introduction 2 Part 1: Overview 2 1.1 Timeline of AIG Accounting Scandal 4 1.2 Relationship Chart of AIG and Its Counterparties 5 Part 2: Accounting Issues 6 2.1 Background on Reinsurance and Relevant GAAP Rules 6 2.2 Manipulation Technique 1 7 2.3 Manipulation Technique 2 7 2.4 Retrospections 8 Part 3: Auditing Issues 9 3.1 Reasons for Auditing Failure 9 3.2 Retrospections 11 Part 4: Corporate Governance 12 4.1 Tone at the Top
Premium Audit Corporate governance Insurance
May 27‚ 2012 Unethical accounting behavior and the resulting practices of it within businesses today is a very hot topic since the Enron accounting scandal of 2001. One might ask how does a scandal of this proportion come to be and can it happen again? What situations could lead to unethical behaviors and practices in accounting today that might cause history to repeat itself? The author intends to answer these questions and shed light on some insight of accounting ethics today. By the end
Premium Enron Business ethics Accounting scandals
2156-7506 Available online http://www.akpinsight.webs.com at Corporate Accounting Frauds: A Case Study of Satyam Computers Limited Madan Bhasin Professor in Accounting‚ Bang College of Business‚ KIMEP University‚ Almaty‚ Republic of Kazakhstan ABSTRACT Corporate entities of all sizes‚ across the globe‚ are easily susceptible to frauds at any points of time. From Enron‚ WorldCom and Satyam‚ it appears that corporate accounting fraud is a major problem that is increasing‚ both in its frequency and
Premium Accounting scandals Fraud Enron
Parmalat accounting scandal Which factors were relevant in the Parmalat scandal? Describe the causes and consequences of the scandal. Parmalat scandal is one of biggest fraud in the world‚ for years the company can eluded responsibilities with financial analysts and investors but was in December 2003 when Parmalat went bankrupt. In this summary it can appreciate the most significant events: In 1990‚ Parmalat started buying milk producers around the world‚ in order to hide a huge debt
Premium Finance Fraud Creative accounting
encounter as a child learning the differences between right and wrong. In 2001‚ Enron was the fifth largest company on the Fortune 500. Enron was also the market leader in energy production‚ distribution‚ and trading. However‚ Enron ’s unethical accounting practices have left the company in joint chapter 11 bankruptcy. This bankruptcy has caused many problems among many individuals. Enron ’s employees and retirees are suffering because of the bankruptcy. Wall Street and investors have taken a major
Premium Enron Enron scandal Business ethics
Performance Investment Product Corporation (PIPC) In 2007 there was a scandal involving a foreign exchange firm Performance Investment Product Corporation wherein the owner of the company‚ Michael H.K. Liew a Singaporean National fled the country taking with him fund’s of the investors amounting to US$140 million to US$250 million. (James‚ PIPC investors lose money as Michael Liew disappears‚ 2007) The firm was established in the Philippine as an online Forex trading service in 1998. (James‚ Updates
Premium Fraud Accounting scandals Insurance
Ayusarita Satriani 311368 – IUP BUSINESS UGM Financial Management ENRON Resources: http://en.wikipedia.org/wiki/Enron_scandal ; http://news.bbc.co.uk/2/hi/business/1780075.stm; http://finance.laws.com/enron-scandal-summary Enron is an energy company that successfully grew from nowhere to be America’s seventh largest company‚ which has 21‚000 staff in more than 40 countries in 15 years. It was one of the world’s leading electricity‚ natural gas‚ communications‚ and pulp and paper companies
Premium Bernard Madoff Fraud Ponzi scheme
"What happened at Arthur Anderson" and "Why?" Arthur Andersen‚ who used to be one of the “Big Five” largest accounting firms in the United States‚ strayed away from accepted policies and stuck in a string of accounting scandals‚ finally closed its doors after 90 years of business. The firm’s name was synonymous with trust‚ integrity and ethics during a long period of time‚ however‚ Andersen failed to withstand the pressure from the competition of consulting service. Thus‚ it leaded
Premium Enron Arthur Andersen Enron scandal
corporate financial scandals like those involving Enron and WorldCom. The act was created in order to combat corporate accounting fraud and enhance the quality of corporate financial disclosures. To accomplish this‚ the act created the "Public Company Accounting Oversight Board"‚ or PCAOB to oversee audits and compliance. History of the Act The Sarbanes-Oxley act arose as a result of several corporate accounting scandals that became public in late 2001 and early 2002. These scandals involved many publicly
Premium Enron Internal control Audit