THE ACCOUNTING REVIEW Vol. 83‚ No. 3 2008 pp. 757–787 Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes-Oxley Periods Daniel A. Cohen New York University Aiyesha Dey University of Chicago Thomas Z. Lys Northwestern University ABSTRACT: We document that accrual-based earnings management increased steadily from 1987 until the passage of the Sarbanes-Oxley Act (SOX) in 2002‚ followed by a significant decline after the passage of SOX. Conversely‚ the level of real earnings
Premium Accounting scandals
Week Five Reflection Summary ACC/290 Principles of Accounting Date Teacher Week Five Reflection Summary Team B In recent years there have been many highly publicized financial accounting scandals. Enron‚ WorldCom‚ and AIG are a few of the well- known corporate companies that have been involved in financial reporting scandals. United Sates regulators and lawmakers made known their concerns of mistrust in corporate accounting‚ because of unethical financial reporting. In 2002 Congress
Premium Enron Corporate governance Finance
ethical behavior in business can be very easily become a disaster in wake of commonsense decisions gone wrong. This research paper is based on decisions being made in unethically manners that in the long run caused three of the largest corporate scandals of Enron‚ Tyco‚ and WorldCom. Before filing for bankruptcy in 2001‚ Enron Corporation was one of the largest integrated natural gas and electricity companies in the world. It marketed natural gas liquids worldwide and operated one of the largest
Premium Enron Business ethics Ethics
MANAGEMENT & ACCOUNTING Audit Challenges in Malaysia Today Teck Heang Lee and Azham Md. Ali Due to the outbreak of financial scandals involving Bursa Malaysia listed companies Transmile and Megan Media‚ it may be argued that 2007 was a “challenging” year for the auditing profession in Malaysia. The “ripple” effect of the scandals caused turbulence in the auditing industry which spilled over to 2008 when the auditing profession was once again in the limelight‚ in the case of Oilcorp Berhad.
Premium Audit Financial audit Accounting scandals
Describe the legal and ethical issues surrounding Andersen’s auditing of companies accused of accounting improprieties The largest bankruptcy of a non-profit organization‚the investors of Baptist Foundation of Arizona sued Andersen which served as the auditor for $217 million for issuing false and misleading approvals of BFA financial statements and also lost $570 million donor funds. BFA management allegedly took money from other investors to pay off the current investors which the court held
Premium Audit Arthur Andersen Financial audit
Open Journal of Accounting‚ 2013‚ 2‚ 26-38 http://dx.doi.org/10.4236/ojacct.2013.22006 Published Online April 2013 (http://www.scirp.org/journal/ojacct) Corporate Accounting Fraud: A Case Study of Satyam Computers Limited Madan Lal Bhasin Bang College of Business‚ KIMEP University‚ Almaty‚ Republic of Kazakhstan Email: madan.bhasin@rediffmail.com Received January 15‚ 2013; revised March 12‚ 2013; accepted March 28‚ 2013 Copyright © 2013 Madan Lal Bhasin. This is an open access article distributed
Premium Fraud Accounting scandals
senior management was “cooking the books” for years to cover up his loses. The reason why senior management agreed to do this fraud is the belief in unique ability of their leader to fix everything later on. This case is known as one of the biggest accounting frauds in the corporate history of the U.S. This paper will analyze who was affected by this fraud‚ the motives behind it and what systems of control failed to prevent it. The major groups that were directly affected are investors‚ employees
Premium Audit Enron Accounting scandals
of 2002 is the most far-reaching change in organizational control and accounting regulations since the Securities and Exchange Act of 1934. The new law made securities fraud a criminal offense and made more strict penalties for corporate fraud. The law now requires top executives to sign off on their firms financial reports‚ and they risk fines and long jail sentences if they
Premium Enron Fraud Accounting scandals
Behavior LDR/531 - Organizational Leadership October 7‚ 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron‚ Tyco‚ Global Crossing‚ etc. In many ways‚ WorldCom is just another case of failed corporate governance‚ accounting abuses‚ and outright greed. Many people may question if there is a secret to operating a successful business in modern times. Some may argue that success is based on being at the right
Premium Fraud Corporate governance Accounting scandals
Independence." ET Section 101. AICPA Standards‚ n.d. Web. 31 Jan. 2013. Norris‚ Floyd. "Indian Accounting Firm Is Fined $7.5 Million Over Fraud at Satyam." The New York Times. The New York Times‚ 06 Apr. 2011. Web. 31 Jan. 2013. Timmons‚ Heather. "Fraud at Satyam." Nytimes.com. Nytimes.com‚ 7 Jan. 2009. Web. 31 Jan. 2013. Winkler‚ David. "India ’s Satyam Accounting Scandal." India ’s Satyam Accounting Scandal. University of Iowa Center for International Finance and Development‚ 1 Feb. 2010. Web. 31
Premium Audit Accounting scandals Financial audit