White Collar Crime White collar crime is prevalent and brought to our attention more and more by the media since the mid to late 1990s. With the downfall of companies such as Enron‚ Tyco Toys and WorldCom MCI white collar criminals are facing lengthy prison sentences. Greed and personal vendettas are what have led our country to understand and gain more knowledge about these corporations and the corrupt CEOs that have brought them to their demise. “White collar crime is defined as various crimes
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the question remains of just how our Country got here. In Enron’s case‚ the direct answer is when “Enron’s directors waived the company’s code of ethics …to allow [Andrew] Fastow (CFO) to run an investment partnership that traded with Enron” (Farrell‚ 2002‚ p. 3). A company’s code of ethic sets principles for members of the group to abide by and to help facilitate understanding of right and wrong. Waiving the code of ethics was morally neutral from a business perspective as all directors
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the rules they set. In Enron case‚ corruption and ethical misconduct were deeply embedded in their business culture where profitability was more important than ethics. In this paper‚ I will address the factors that had led to the development of the culture of profit before principle at Enron. Also‚ I will create my personal code of ethics that will guide me in my professional and personal decision making and doing the right thing when faced with ethical challenges. “Enron: The Smartest Guys in the
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Corporate Scandal I. Olympus Updated: April 20‚ 2012 Olympus Corporation‚ founded in 1919‚ is a manufacturer of digital cameras and electronic equipment. Based in Tokyo‚ the multibillion-dollar company has operations worldwide. In mid-October 2011‚ Olympus was rocked by scandal when its former chief executive and president‚ Michael C. Woodford‚ who is British‚ was suddenly fired. The company’s chairman‚ Tsuyoshi Kikukawa‚ blamed a culture clash‚ but Mr. Woodford‚ a 30-year Olympus employee‚
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Accounting Indicators. The story of 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
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AFM 201 – Part 1 Auditing Fall 2007 Group Assignment 2 Publicized Cases of Alleged Audit Failures Involving Large Public Companies 1) Ten Publicized Audit Failures i. Parmalat (2003) - Deloitte & Touche Tohmatsu /Grant Thornton Misleading investors with “Brazen Fraud” was what the United States (US) Securities and Exchange Commission (SEC) had sued Parmalat for in 2003. It all began when Parmalat defaulted on a bond payment worth $185 million. This raised a flag for auditors and banks
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While consulting at Enron‚ Arthur Anderson CPAs did not maintain independence and performed both consulting services and auditing services‚ which are a violation of the CPA code of ethics. <>History<> In 1887‚ thirty-one accountants created the American Association of Public
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the case study of Enron and Arthur Andersen‚ the latter company and an independent auditor had to fire a partner who was acting unprofessional and had asked employees to destroy documents containing accounting information. This is after the partner realised that the Security and Exchange commission had picked interest in the Enron affairs and was scrutinising and investigation the company accounting information. The court ruled that Anderson Company was liable for the fall of Enron in 2001. Lots of
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to $4.4 million in 2005 (Labonte‚ & Shorter‚ 2008). At Enron executives had incentives to achieve high-revenue growth because their salary increase and cash bonus amount were linked to reported revenues. “In the proxy statement filed in 1997‚ Enron wrote that “base salaries are targeted at the median of competitor group that includes peer group companies…and general industry companies similar in size to Enron. Employees had incentives to achieve high revenues and earnings targets
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EBSCOhost. Wiesen‚ J. (2003). Congress Enacts Sarbanes-Oxley Act of 2002: A Two-Ton Gorilla Awakes and Speaks. Journal of Accounting‚ Auditing & Finance‚ 18(3)‚ 429-448. Retrieved from EBSCOhost. Yuhao‚ L. (2010). The Case Analysis of the Scandal of Enron. International Journal of Business & Management‚ 5(10)‚ 37-41. Retrieved from EBSCOhost.
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