Assignment #3 - Arthur Anderson: Questionable Accounting Practices February 11‚ 2013 Ethics And Advocacy For Hr Pro- HRM 522 Assignment #3 - Arthur Anderson: Questionable Accounting Practices 1. Discuss how the issues with the Arthur Anderson case may have played out differently if the Sarbanes-Oxley Act had been enacted in 1999. The provisions of Sarbanes-Oxley Act help minimize the likelihood of auditor failing to identify accounting irregularities by the following requirements:
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more transparency. Unfortunately‚ then SEC increasing standards came after a failure of the system. The Sarbanes-Oxley Act of 2002 is a primary example of legislation following financial market failure. Then came a second wave of scandals‚ led by WorldCom and Adelphia in the summer of 2002. As the stock market continued to plummet only a few months before the fall elections‚ Congress and the White House saw the need for action. This time‚ Congress rushed to pass the complicated Sarbanes-Oxley Act
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(SOX) support or contradict the principles of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework. First‚ the Sox act was established in 2002‚ as a response to the corporate and accounting scandals such as Enron and WorldCom who swindle their shareholder out of millions‚ the purpose for the act is to protect the rights of investors (Fraser & Simkons‚ 2010‚ p. 351). With the enactment of SOX‚ it improves the accurateness of corporates disclosures in order to be consistent
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Case study 10.1 - THE RISE AND FALL OF WORLCOM Bernie Ebbers built WorldCom‚ Inc. (now part of Verizon‚ Inc.) into one of the world’s largest telecommunications firms. Yet he and chief financial officer (CFO) Scott Sullivan have become better known for creating a massive corporate accounting fraud that lead to the largest bankruptcy in U.S. history. Two investigate reports and subsequent court cases conclude that WorldCom executives were responsible for billions in fraudulent or unsupported accounting
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market. Moreover‚ Odlyzko noted that new technologies were increasing the amount of data that could be sent down existing fibers‚ reducing the need for new fiber. But with investment money flooding into the market‚ few paid any attention to him. WorldCom was still using the 1‚000 percent figure as
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risks of material misstatements. At the same time‚ auditors should take appropriate auditing skills and processes to minimize above potential risk. Professional judgment directly affects auditors to collect of information and to make the auditing conclusions. In short words‚ professional judgment must be cautious‚ adjective and of integrity. It focuses on the fair statement of an accounting entity ’s business activities. Normally‚ the business judgments rule requires the management of an enterprise
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5/17/13 Sarbanes-Oxley Act (SOX) SearchCIO.com Sarbanes-Oxley Act (SOX) The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the highprofile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC)‚ which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley
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Liberty University Integration of Faith and Learning BUSI520 Character is the foundation “A good name is rather to be chosen than great riches‚ and loving favour rather than silver and gold.” (Proverbs 22:1 KJV) In Hebrew the word “name” is shem which designates something as a mark or memorial of individuality‚ and by implication‚ honor‚ authority‚ reputation or character (Strong‚ 2010). Other biblical versions state‚ “A good reputation…” Businesses‚ in this case marketing firms‚ establish
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Sarbanes-Oxley Act of 2002 Samantha Sahni ACC/561 July 9‚ 2013 Dale Stoeber Sarbanes-Oxley Act of 2002 Titled after promoters‚ “U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley” ("The Sarbanes-Oxley Act"‚ 2006)‚ “The Sarbanes–Oxley Act of 2002” is a U.S. government regulation that established novel or improved principles for U.S. community business panels‚ administration‚ and community accounting organizations. Consequently‚ because of the SOX‚ higher management is required
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market. Moreover‚ Odlyzko noted that new technologies were increasing the amount of data that could be sent down existing fibers‚ reducing the need for new fiber. But with investment money flooding into the market‚ few paid any attention to him. WorldCom was still using the 1‚000 percent figure as late as September
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