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
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Andersen‚ LLP Abstract Enron was a natural gas company that was formed in 1985 by Kenneth Lay. By 1992‚ Enron was the largest selling company of natural gas in North America. In October 2001 a scandal involving Enron was emerging. This scandal led to the fall of the company. The Enron case and many others cases led to the collapse of other companies that did business with them which included one of the largest accounting firms in Chicago; the accounting firm of
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The Bernie Madoff Ponzi scheme was life altering for numerous individuals who trusted in Madoff with their life savings and hard-earned wealth. Although the original scandal made headline news over eight years ago lawsuits and other remnants still remain. In 2013‚ one of largest organizations that people believe contributed the J.P. Morgan (JPM) agreed to settlement with a onetime payment of $billion dollars (J.P. Morgan Chase Will Have To Pay A Fine‚ 2013). Although many believe that JPM was the
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Corporate Transparency vs. Business Performance Throughout history‚ mankind has had innumerable moments of corruption and greed. From the City-State wars in ancient Greece to the organized crime during the prohibition‚ human beings have always been prey to the desires of wealth and power. While our current society may seem civilized compared to those eras‚ the shallow traits which haunted mankind then are still in play in today’s society. There are always going to be people looking for a way to
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The company fat cats or executives have made a fortune despite the recent bankruptcy and the invested employees/shareholders have suffered major financial losses. Who is the company? You would not be alone in immediately thinking of Enron and the scandal that involved Key Lay‚ also in 2002. However‚ the correct answer would be Global Crossing‚ a 5 year old company founded by Gary Winnick in 1997. The Rise of Global Crossing. As mentioned in the introduction of this paper‚ from the outside facts
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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
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to minimize fraudulent activities. Ethics and standards in accounting were originally applied to protect the public from unscrupulous corporations and the accountants who hide or misrepresent information. However‚ following several large corporate scandals‚ the codes of conducts and standards for both public and private accountants have been revised. Given the corporate ethical breaches in recent times‚ assess whether or not you believe that the current business and regulatory environment is more
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In organizational behavioral theory‚ it is clear that in the Enron scandal‚ one can understand the elements that encourage white collar crime. Organizational crime has three categories‚ (1) organizational goals (2) organizational environment (3) and organizational structure (Weisburd‚ D. 1992) Clearly in Enron scandal‚ opportunity theory will argue that traders who had a hard time meeting its numbers will had a greater chance of utilizing illegal means to meet its goal. (P.65) I thought that the
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Accounting‚ or accountancy‚ is the measurement‚ processing and communication of financial information about economic entities. Accounting‚ which has been called the "language of business"‚ measures the results of an organization’s economic activities and conveys this information to a variety of users including investors‚ creditors‚ management‚ and regulators. Practitioners of accounting are known as accountants. The terms accounting and financial reporting are often used as synonyms. Accounting
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management during their times of trouble. According to James and Wooten (2005)‚ organizational crises can be classified into two types: sudden (such as natural disasters‚ sabotage‚ hostile takeover‚ technology disruption) and smoldering (such as rumors/scandals‚ mismanagement‚ workplace safety‚ class action lawsuits). Because sudden crises are often seen as out of the control of people’s hands‚ the public is often sympathetic and understanding of a company’s reaction to this type of event. Smoldering crises
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