Red Flag #5: Poor Corporate Governance Several weaknesses exist in JP Morgan’s corporate governance structure.
Red Flag #5: Poor Corporate Governance Several weaknesses exist in JP Morgan’s corporate governance structure.
Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.” Briefly explain the difference between a fraud “condition” and a “fraud risk factors,” and provide examples of each. What fraud conditions and fraud risk factors were apparently present in the Madoff case?…
Descriptions of the main aspects of the regulatory environment which will protect the public from fraud within corporations are going to be provided in this paper. A special attention to the Sarbanes – Oxley Act of 2002 (SOX) requirement; along with an evaluation of whether Sarbanes-Oxley Act will be effective in avoiding future frauds based on their implemented rules and regulations.…
In the beginning years of the new century a series of huge corporate frauds predominated the business sections and front pages of dominant newspapers, shaking public confidence in the integrity of corporate America. Those scandals also raise serious questions about the integrity, acuity and prudence of business leaders and accountants who structure and document business transactions, approve required financial disclosures, and, in the case of accountants, certify the accuracy of required reports (Enrione, Mazza, & Zerboni, 2006).…
The Sarbanes-Oxley Act of 2002 (SOX) was established after many corporate scandals such as Enron, WorldCom, and AIG cost investors billions of dollars. Financial fallout from these scandals reduced the American public 's trust in the economy. The enactment of SOX in 2002 holds corporations to higher standards in reporting financial statements to internal and external users. Even though the standards for SOX are still evolving, the new regulatory environment generated in its wake will now protect the public and the market from fraud within corporations. This paper will discuss the main aspects of the SOX Act, its imposed requirements…
Enron’s failure spotlighted corporate America’s moral failures and tremendously injured those that condoned and benefited from the unethical practices. This failure resulted in a major overhaul of accountability guidelines of the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Code of Ethics was promulgated along with other support mechanisms that monitor a company’s ethics program that extends to the core values of company management and personnel. Of the five components of ethical behavior, honesty is perhaps the most complex and difficult to implement since the ultimate decision to disclose information to the public relies mostly on the individual’s ethical values or interpretations that can be manipulated to produce a desired…
The moral tone of the case study we were given to read, written by Michael Lewis, almost seemed to be a defense as to why what Jonathan had done should have been acceptable. Lewis seemed to portray Jonathan as just a kid doing what all financial analyst and stock gurus do daily, but since Jonathan was 15, and doing it well, then the Securities and Exchange Commission was “picking” on him. At times in the story their was a sense on emotional disarray, and no one wanting to be the blame or accept responsibility for the situation, especially between Jonathans, his mother, and father.…
The American government has taken significant measures to protect the public from fraud with-in corporations. Many federal laws have been enacted, regulatory bodies created and empowered to monitor and enforce those laws. The Sarbanes-Oxley Act, (SOX), of 2002 was an attempt to address several violations to the public trust from corporations that continued to occur despite the previous attempts to govern corporate responsibility to the public. This act specifically tried to reduce unethical corporate behavior and increase public confidence in the financial reporting of corporations (Kimmel, Weygandt, & Kieso, 2011). This paper will address if the requirements of SOX will be enough to prevent future fraud in the corporate environment.…
JPMorgan Chase runs a smooth business in a strict laid out way to ensure it is ethical. The business even makes the employee take a training to ensure they staying true to the company's values. In addition, they lay out a couple question to ask yourself when faced with tough situations (problems). In their code they urged the need to stay ethical, which is an idea represent throughout The Young Professional’s Survival Guide. The values reflected from their code of conduct include: accountability, ethics, respect. Throughout their code JPMorgan Chase made it clear they wanted to be held accountable for the values they promote throughout this code. The need for the business to hold itself, its customers, and its employees accountable sets it apart from the competition. These are values I hold true to myself. Ensuring I turn in high quality work on time to my professors showcases the value accountability, ethics, and respect because it allows me to make the most of my education while respecting the professor's…
“The paper describes the main aspects of the regulatory environment which will protect the public from fraud within corporations. It pays particular attention to SOX requirements and specifically evaluate whether SOX will be effective in avoiding future frauds” (University of Phoenix, 2014).…
3-6 Explain the relationship between an employee’s position and the level of theft (according to…
The Board of Directors and Management team engaged in several conflict of interest actions. They were the first company to be charged under the Sarbanes Oxley Act of 2002; which holds financial executives more accountable by making them review and sign the financial statements. The SEC charged and found guilty, fifteen executives with accounting fraud they also admitted that they were a part of the fraud. If they had co-operated with the authorities the fraud would have been detected. Nobody wanted to decrease their wealth that occurred due to their unethical practices. According to (Lublin & Carms, 2003 para1) one of the directors, made a statement that they were not aware of what was going on. Their loss of accountability and transparency is obvious. They became oblivious to the fact that they were cheating investors of millions of dollars. Confusion is apparent because they did not know what was ethical anymore.…
This is an ethical review of the film Wall Street (Stone and Weiser). It examines ethical dilemmas Bud Fox faced and what made him vulnerable to crossing the ethical line, as well as what factors led to Fox 's attempt to repair the ethical breach. It examines Gordon Gecko 's thoughts on a person 's vulnerability to making an ethical breach and how this related to Bud Fox. Finally, it will take a look at factors in the film that relate to the Enron and WorldCom cases.…
In this report the accusations laid against Goldman Sachs shall be verified according to laws and codes set by financial committees of the UK and USA. The underlining question this report analysis’s is “can a company be profitable while at the same time being responsible and accountable”, since its reason for existence is to create wealth for its shareholders.…
The code of ethics of the company consists a large portion of text about the general code of ethics which is applied to every individual unit, but it emphasis less on the code for investment banking industry, such as insider dealing, money laundering,…
inviolate or the disclosure of which would be embarrassing or would likely be detrimental to…