generation of employees. The new director was keen to explore more customers. They audit and certificate more accounts and made larger profits for their company. Andersen guaranteed the accounts for dishonest company from John DeLorean to Enron and WorldCom. The code of ethics which Andersen against are: 1. Standard I (A) Knowledge of the Law. Members and Candidates must understand and comply with all applicable laws‚ rules‚ and regulations (including the CFA Institute Code of Ethics and Standards
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Executive Compensation and the Dramatic Increase in Corporate Accounting Scandals According to one estimate‚ the total median CEO pay at the nation’s 350 largest publicly-owned firms grew from $2.7 million annually in 1995 to $6.8 million in 2005. The overall increase in CEO pay has outstripped inflation and the growth in non-managerial pay over the same period. Equally important is the trend in the composition of CEO performance-based pay which includes stock and stock option grants. Median
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One of the most widespread laws that were passed after the 2001 financial corruption of Enron‚ along with several other scandals‚ such as WorldCom and Tyco caused the implementation of the Sarbanes-Oxley Act (SOX) of 2002. These corporations sent a financial shockwave throughout our country crashing the markets. As a result‚ the people were no longer confident in the financial markets and their work ethics. They wanted to understand how effective it would be upon its implementation. This paper will
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family. In Miss Julie the main characters are Julie‚ the daughter of the Count and a shockingly feminist mother and Jean‚ the manor’s thirty year old valet who has big desires to be rich. In Bad Animals the main characters are Joel‚ Cynthia and Jonah‚ Joel and Cynthia are the parents of Jonah‚ a boy who has autisim. These stories mainly focus on how family can affect a persons life‚ in Miss Julie Julie’s parents were not good parents at all‚ raised by a feminist mother who abhorred men and a father
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corporation that was established by Congress and placed under the jurisdiction of the Securities Exchange Commission. The Sarbanes-Oxley Act of 2002 (SOX) and the creation of the PCAOB was a direct result of the accounting fraud scandals of Enron and WorldCom‚ which resulted in major losses for investors and a precipitous decline in investor confidence in the U.S. capital markets. Therefore‚ the PCAOB was established to oversee auditors of public companies in order to protect the interests of investors
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clients’ desire to maximize profits‚ particularly in the era of quarterly earnings reports. Andersen has been alleged to have been involved in the fraudulent accounting and auditing of Sunbeam Product Waste Management‚ Baptist Foundation of Arizona‚ WorldCom and Enron. On June 15‚ 2002‚ Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron‚ resulting in the Enron scandal. Nancy Temple (Andersen Legal Dept.) and David Duncan (Lead Partner for the Enron
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Worldcom appears to be an ethically challenge company. The ethical consideration involved in the company decision to loan executives’ money to cover margin calls on their purchases of shares of company stock is a clear case of conflict of interest. Conflict of interest is morally wrong and will cause harm to the stockholders and stakeholders and therefore be an injustice towards them. The main business ethical issue in the Worldcom case was the false reports and the idea that issues were held "secret"
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In his paper‚ Carson points out 4 main arguments that we can derive from the recent corporate scandals (e.g. Enron‚ WorldCom). The arguments pointed out revolve around the flaws and inadequacy in current business approaches such as the stakeholder theory‚ shareholder theory and incentives system in corporations currently. In my response paper‚ I will make use of ethical theories such as Kantian ethics‚ Utilitarianism‚ Rawl’s theory of justice etc. to analyse the arguments made in the paper and to
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June Knight March 14‚ 2013 The Searchers Film‚ 1-5p The Searchers: The Making of An American Legend Overview In 1836‚ in East Texas‚ a war group of Comanche has kidnapped‚ a nine-year-old girl named Cynthia Ann Parker. The Indian tribe took her in and raised her as if she was a natural part of their tribe. She was welcomed by the tribe and eventually became the wife of a warrior. Ethan Edwards‚ (John Wayne) an embittered veteran‚ who returns home to Texas after the Civil War. Ethan
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than two (2) typed lines in length. A) Cynthia is the Chief Financial Officer of Big Corporation (BC). Cynthia’s current objective is to evaluate five new projects with a total capital requirement of $6 million. All of the projects have a positive NPV. The overall capital available for new projects for the next year is $5 million. Which of the following statements about the capital budgeting process that Cynthia should employ is true? 1) Cynthia should rank the projects in increasing order
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