Accounting scandals Essays & Research Papers

Best Accounting scandals Essays

  • Accounting Scandals - 2128 Words
    The fallout that accompanied the accounting scandals of the early 2000’s had an immediate impact on corporate business and accounting practices which is still being felt today. The collapse of Enron and its accounting firm Arthur Andersen, as well as the subsequent collapses of Worldcom and others have left a permanent mark on how corporate businesses and accounting firms are perceived and how they are regulated. It has also altered the experiences of students who are pursuing, or are...
    2,128 Words | 6 Pages
  • Enron Accounting Scandal - 1706 Words
    The Enron Accounting Scandal of 2001 There are many accounting scandals that have occurred throughout United States History. Many scandals occur even without outsiders knowing anything that had occurred. Companies try their best to keep many of the accounting scandals quiet. Everyday, there are political and business fraud happening, and most of it goes unnoticed. No company wants to admit that there was a problem or that people within the company are not trust worthy. However, when...
    1,706 Words | 5 Pages
  • Accounting Scandals: Enron and WorldCom
    The Accounting Scandal Enron Corp. Collapse and WorldCom Accounting Scandal 11/18/2020 The Enron Corp. collapse Formed in 1985 from a merger of Houston Natural Gas and Inter-north, Enron Corp. was the first nationwide natural gas pipeline network. Over time, the firm’s business focus shifted from the regulated transportation of natural gas to unregulated energy trading markets. The guiding principle seems to have been that there was more money to be made in buying and selling financial...
    1,082 Words | 4 Pages
  • AIG Accounting Scandal - 2375 Words
    AIG Accounting Scandal Contents 1.0 Introduction ………………………………………………. 2 1.1 Overview of AIG …………………………………….. 2 2.0 Scandal Methodology Used by the Company………… 3 2.1 Accounting Practices Errors ……………………….. 3 3.1 Ways to Hide Accounting Improprieties ………………. 4 4.1 Who the scandal effected ………………………………. 7 5.1 Recommendations ………………………………………. 8 6.1 Conclusions ………………………………………………. 9 7.1 References ………………………………………………. 10...
    2,375 Words | 8 Pages
  • All Accounting scandals Essays

  • Accounting Scandals 3 - 10869 Words
    CHAPTER ONE INTRODUCTION 1.1 Background of the Study Financial accounting is one branch of accounting and historically has involved processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated; for public companies, this information is generally publicly-accessible (Financial Accounting Info, 2006). Accounting attempts to create accurate financial reports that are useful to managers, regulators and other stakeholders such as...
    10,869 Words | 37 Pages
  • Enron Accounting Scandal - 1105 Words
    Enron was originally a pipeline company in Houston, Texas in 1985. Enron became a company that was able to profit by providing deliveries of gas to utility companies and businesses. As the deregulation of electric power rose, Enron diversified the business and entered into an energy broker, which traded electricity and other types of commodities. Enron employed several highly qualified PHDs in mathematics, physics, and economics. Enron continued to enter into contracts with customers and...
    1,105 Words | 4 Pages
  • Corporate Accounting Scandal - 1786 Words
    CORPORATE ACCOUNTING SCANDAL AT SATYAM COMPUTER SERVICES LIMITED BACKGROUND Ironically, Satyam means “truth” in the ancient Indian language “Sanskrit” (Basilico et al., 2012). Satyam won the “Golden Peacock Award” for the best-governed company in 2007 and in 2009. From being India’s IT “crown jewel” and the country’s “fourth largest” company with high- profile customers, the outsourcing firm Satyam Computers has become embroiled in the nation’s biggest corporate scam in living memory...
    1,786 Words | 5 Pages
  • The WorldCom Accounting Scandal - 1418 Words
    The WorldCom Accounting Scandal WorldCom was started in Mississippi as a long distance telephone service provider in 1983 (Lyke and Jickling, 2). Over the next decade and a half, the company expanded to offer a whole range of telecommunication services through a series of mergers and acquisitions (Lyke and Jickling, 2). At its height, WorldCom was the largest long distance phone company in the United States and was one of the leading companies in the telecommunication market in the world,...
    1,418 Words | 5 Pages
  • Accounting Scandals in the early 2000s
    During the early 2000s, the role of accounting and the auditing profession changed and several accounting scandals were uncovered. a.What conditions caused accounting and the audit profession role to change during this time?The Enron scandal is one of the biggest from the early 2000s. Everything about this fiasco is huge, including a $50 billion bankruptcy, and employee retirement accounts drained of more than $1 billion. Enron's auditor, Arthur Andersen, was indicted on criminal charges in...
    324 Words | 1 Page
  • Accounting Scandals 2 - 441 Words
    Notable outcomesThe Enron scandal turned in the indictment and criminal conviction of one of the Big Five auditor Arthur Andersen on June 15, 2002. Although the conviction was overturned on May 31, 2005 by the Supreme Court of the United States, the firm ceased performing audits and is currently unwinding its business operations. On July 9, 2002 George W. Bush gave a speech about recent accounting scandals that had been uncovered. In spite of its stern tone, the speech did not focus on...
    441 Words | 2 Pages
  • Nowadays, Accounting Scandal - 262 Words
    Nowadays, accounting scandal or financial statement fraud has increasingly become a serious issue and it threatens to undermine the profession of accountants and auditing companies. Therefore, I think that this has affected the way future accountants view the importance of accounting principles, future accountants will tend to neglect and disregard accounting principles even more regarding the present accounting scandals. I plan to start my introduction by explaining briefly what accounting is...
    262 Words | 1 Page
  • Assignment # 3 Worldcom Accounting Scandal
    Assignment # 3 WorldCom Accounting Fraud By Mark A. Cowan Strayer University ACC 499- Accounting Capstone May 15, 2011 The purpose of this paper is to discuss the aspects of the WorldCom accounting scandal and the effects that this scandal had on the accounting world as we know it. We will discuss the corporate culture at WorldCom and how it contributed to the accounting fraud, how the CEO’s desire to be the #1 stock on Wall Street contributed to the fraud, pressures on...
    1,495 Words | 5 Pages
  • Accounting Scandals and Web Images Videos
    234567uiolkjhgftyuiop;Why were the actions taken by WorldCom managers not detected earlier? What process or systems should be put into place to prevent or quickly detect the types of actions that occurred in WorldCom. It may be helpful to list the multiple governance failures Web Images Videos Maps News More Bing 1669Jiayao 120,000 resultsAny time Why Were The Actions Taken By Worldcom Managers Not Detected ......
    1,157 Words | 10 Pages
  • Ethics: Accounting Scandals and Enron S Directors
    Individual Assignment Case Studies – ACCT 1085 Ethics and Accountability (Semester One, 2014) China’s Tainted Baby Milk Powder: Rumored Control of Online News Discussion of Ethical Issues 1. Given strong profit growth, has there been any damage to Baidu.com’s reputation? 2. What would future reputational damage affect, and how could it be measured? 3. What steps could Baidu.com take to restore its reputation, and what challenges will it have to overcome? 4. Governments throughout the...
    807 Words | 3 Pages
  • Executive Compensation and the Dramatic Increase in Corporate Accounting Scandals
    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....
    985 Words | 3 Pages
  • Corporate Finance AIG Accounting Scandal Explained December 8th, 2012
    Corporate Finance AIG Accounting Scandal Explained December 8th, 2012 ________________________________________________________________________________ On February 9th, 2006, the SEC and the Justice Department settled with AIG for an amount in excess of $1.6B related to alleged improper accounting, bid rigging (defined by Investopedia as a scheme in which businesses collude so that a competing business can secure a contract for goods or services at a pre-determined price), and practices involving...
    2,408 Words | 6 Pages
  • Corporate Scandals - 4866 Words
    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,...
    4,866 Words | 14 Pages
  • Healthsouth Scandal - 840 Words
    Fall 10 [Management 3200 – Business & Society 08 Fall I. Background Information a.) HealthSouth Corp. is the nation’s largest provider of rehabilitation, outpatient surgery and diagnostic services. Now however, it is the nation’s largest inpatient rehabilitation hospital. * At the company's height in 2003, it recorded nearly $4.5 billion in revenue, dominated the rehabilitation, surgery and diagnostic services market and employed more than 60,000 people at 2,000...
    840 Words | 3 Pages
  • Enron Scandal - 1773 Words
    The Enron Scandal One of the most popular business bankruptcies and collapses known to date is that of the Enron Corporation. Enron, once known as "America's Most Innovative Company" by Fortune Magazine six straight years from 1996 to 2001. Enron seemed to be doing very well until the summer of 2001 generating a lot of cash and new businesses, but in October of 2001 Enron was forced to disclose that their accounting practices had been very creative, and failed to follow generally accepted...
    1,773 Words | 5 Pages
  • Worldcom Scandal - 498 Words
    The purpose of this report is to look back at one of the biggest US corporate scandals: WorldCom. WorldCom fall down was the biggest bankruptcy in US corporate history: 20,000 employees lost their jobs, shareholders lost about 180billion dollars. How did all this happen? Unethical practices: 1. Change in accounting policy: there was a change in the accounting policy in 2000 to support an additional accrual release. GAAP does not permit the use of accruals established through charges for...
    498 Words | 2 Pages
  • Enron Scandal - 1851 Words
    THE ENRON SCANDAL FACTS OF THE CASE Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Enron's predecessor was the Northern Natural Gas Company, which was formed during 1932, in Omaha, Nebraska. It was reorganized during 1979 as the main subsidiary of a holding company, Inter-North which was a diversified energy and energy related products company. During 1985, it bought the smaller and less diversified Houston Natural Gas company. > Employed...
    1,851 Words | 6 Pages
  • Creative Accounting - 263 Words
    Creative accounting refers to accounting practices that deviate from (the spirit of ) standard accounting practices. They are characterized by excessive complication and the use of novel ways of characterizing income, assets or liabilities. Sometimes the words "innovative" or "aggressive" are used. The term is also (used more seriously and disparagingly) to refer to systematic misrepresentation of the true income and assets of business organizations. "Creative accounting" on this scale has...
    263 Words | 1 Page
  • Accounting Essay - 1014 Words
    Accounting Essay: Important skill and attribute for success as a CA (Good Copy) Cake is among one of the most popular desserts eaten at ceremonial occasions especially during events like weddings, birthdays and anniversaries. There are countless types of cakes in the world nowadays. Although most cakes share common cooking procedures, the ingredients are what define each type of cake from one another. Thus, the required ingredients of a particular type of cake are crucial in...
    1,014 Words | 4 Pages
  • Financial Accounting - 358 Words
    Financial Reporting Accurate financial reporting is paramount to the establishment of a level playing field for businesses. It also aids in analyzing trends in business and the economy. The first part of the research paper should outline the different offices and bureaus of financial reporting and why they are significant. The second part of the research paper will present some positive and negative examples of financial reporting results and offer analysis about them. These examples can...
    358 Words | 2 Pages
  • accounting fraud - 642 Words
    The 10 biggest frauds in recent U.S. History Enron: The energy company's bankruptcy in 2001 after allegations of massive accounting fraud wiped out $78 billion in stock market value and led to the collapse of Arthur Andersen and the passage of the Sarbanes-Oxley Act of 2002. A class action settlement of $7.185 billion was the largest of all time. Former President Jeff Skilling is serving a 24 year sentence. Bernard Madoff: New York money manager Bernard Madoff's $65 billion Ponzi scheme,...
    642 Words | 3 Pages
  • Accounting Fraud - 424 Words
    RM530 million Transmile accounting fraud – how Liong Sik is to assume responsibility as Chairman? Former MCA President and Cabinet Minister, Tun Dr. Ling Liong Sik was quite active in the past month, as a search with The Star archives would produce eight news items featuring him, including one today at the ceremony at the Universiti Tunku Abdul Rahman (Utar) campus in Kampar yesterday planting a Blue Pine tree. But he has been very reticent on what has been described as the biggest accounting...
    424 Words | 2 Pages
  • Creative Accounting - 2021 Words
     Creative Accounting AC4001 12/13/2013 ‘Many investors now believe that companies can manipulate their accounts more or less at will, with the aim of producing profits that increase steadily over time. Provisions are bumped up in good years and later released, or the value of an acquisition is slashed; there are plenty of tricks.’ In your opinion is it possible to eliminate creative accounting? I do not think that creative accounting practice can be eliminated completely....
    2,021 Words | 6 Pages
  • Accounting Theory - 1486 Words
    Introduction The globalization of economic activity has an increased demand for higher quality of accounting standards to enable investors to understand the financial statements and make comparison the financial information of companies from different countries. According to Nobes and Parker 2004 p.77, ‘harmonization’ is defined as ‘a process of increasing the compatibility of accounting practices by setting bounds to their degree of variation. ‘Standardization’ of accounting is expressed as...
    1,486 Words | 5 Pages
  • Ethics in Accounting - 1406 Words
    Corporate ethical breaches in recent times have raised questions about whether the current business and regulatory environment is conducive to ethical behavior. Cases leading to regulatory changes through scandalous financial reporting include Enron, Worldcom, Tyco, HealthSouth and others (Enofe, 2010, p.54). Since the barrage of scandals in the early 2000’s, regulatory bodies like the Federal Accounting Standards Board (FASB), Securities and Exchange Commission (SEC), and law reform like the...
    1,406 Words | 4 Pages
  • Enron and Worldcom Scandal - 595 Words
    Enron’s Questionable Transactions 1. Which segment of its operations got Enron into difficulties? * The fact that Kopper was appointed to Fastow and he was an employee at Enron was the first thing that got them into trouble. Another reason was that over 11 million was invested and it ended up not being invested at all. I believe these two situations ended up being the start of Enron’s problems. Enron also was not reporting the revenue for service correctly and his stock was...
    595 Words | 2 Pages
  • Accounting Fraud - 2205 Words
     Accounting Fraud: A White Collar Crime Accounting Fraud: A White Collar Crime The CEO and CFO of a Swiss security systems company named Tyco, stole 150 million dollars from their company before being caught in 2002. At the height of the scandal, the CEO threw a 2 million dollar birthday party for his wife on a private island with guest performer Jimmy Buffet. After being caught, the CEO and CFO were sentenced to 8-25 years in prison and Tyco had to repay its investors 2.92 billion...
    2,205 Words | 7 Pages
  • Creative Accounting - 1791 Words
    Creative Accounting Introduction In the accounting world, the general rule is that accounts should give a true and fair view. Under local and international law, a professionally qualified accountant has a responsibility to comply, a corporation has a legal responsibility to comply, auditors have a legal responsibility to give some sort of opinion on compliance; yet frequently this all goes out of the window. Occasionally accountants and businesses are motivated to produce...
    1,791 Words | 6 Pages
  • Scandals: Enron and Fun Fact
    The 10 Worst Corporate Accounting Scandals of All Time If there is one theme to rival terrorism for defining the last decade-and-a-half, it would have to be corporate greed and malfeasance. Many of the biggest corporate accounting scandals in history happened during that time. Here's a chronological look back at some of the worst examples. Waste Management Scandal (1998) Company: Houston-based publicly traded waste management company What happened: Reported $1.7 billion in fake earnings. Main...
    1,227 Words | 4 Pages
  • Enron Corporate Scandal - 982 Words
    Ba (honors) in business & management Offered by Cardiff metropolitan university Strategic management Assignment 02 - Enron Submitted to: Mr. Shane De Silva M.F.M.M Fazlan ICBT/ BABM/07 Executive Summary This report is provides information the Enron scandal which is revealed in 2001. The main reasons for scandal have been described. There are many individuals...
    982 Words | 4 Pages
  • Enron and World Com Scandals
    Assignment: The Enron and World Com Scandals ACC/260 September 17, 2010 Pp 106-107 1. Which segment of its operations got Enron into difficulties? The segment of operations that started the difficulties with Enron went back to the guarantee of loans in order to bridge financing with investments of an outside investor that was never found. Documents were later forced to be restated with activities of other companies that had to be consolidated into Enron’s accounts. 3. Did Enron’s...
    605 Words | 2 Pages
  • Acc260 the Enron and Worldcom Scandals
    Wk2 Assignment: The Enron and WorldCom Scandals Student Name ACC/260 Date Instructors Name[Page Break] 1. Which segment of its operations got Enron into difficulties? The guaranteed loans that were intended to bridge the financing for investments from outside investors that could not be found would be the segment of operations that caused Enron difficulties. 2. Did Enron’s directors understand how profits were being made in this...
    537 Words | 3 Pages
  • Enron Scandal with Code of Ethics
    Assignment (Arthur Andersen) Arthur Andersen Limited Liability Partnership was one of the “Big Five” accounting firm who providing auditing, tax and consulting services to large corporations. This is an accounting firm that held by reputation and trust by public and investor but it facing bankruptcy in the end. Early of the 20th century, invertors don’t know who can be trust because there was spread of business scandals. All they need was auditors. Andersen establishes a company to be...
    715 Words | 3 Pages
  • Common Themes In Corporate Governance Scandals
    Common themes in Corporate Governance Scandals According to ACCA (2014) “Corporate governance is the system by which companies are directed and controlled”, also the corporate governance definition in the ACCA (2014) and Financial Times (2015) are quite different but similar at the same time, “How a company is managed, in terms of the institutional systems and protocols meant to ensure accountability and sound ethics. The concept encompasses a variety of issues, including disclosure of...
    891 Words | 3 Pages
  • Case Study: Healthsouth Corporation Scandal
    Anna James Case Study: HealthSouth Corporation Scandal Week3 Forensic Accounting: Ethics and Legal Environment Professor Erskine Hawkins HealthSouth Corporation is a large, public healthcare company that operates 93 inpatient rehabilitation hospital, 49 outpatient rehabilitation satellites, six long-term acute care hospitals, and 25 home health agencies. According to the company websites, it is “one of the nation’s largest healthcare providers specializing in...
    1,512 Words | 4 Pages
  • Project 1 Accounting & Finance
    1. Identify an accounting scandal at a corporation that has resulted in a loss of reputation to the accounting profession. Explain the crime(s) committed. In early 2008 Lehman borrowed large amounts to fund its investing in the years leading to its bankruptcy in 2008, “a process known as leveraging or gearing”. A large part of their investments were towards housing market, making it vulnerable to a downturn in that market. This firm generated large profits during the housing boom, this place...
    610 Words | 2 Pages
  • Accounting Fraud at Worldcom - 476 Words
    SUBJECT: Accounting fraud at WorldCom Problem Statement WorldCom penetrated the largest accounting fraud in U.S history by overstating its tax income between 1999 and 2002. The main players in WorldCom's accounting fraud included CFO Scott Sullivan, the General Accounting and Internal Audit departments, external auditor Arthur Andersen, and the board of directors. While individuals did have their own sins, employees cowardice and self-interested, the board passive and ineffective, external...
    476 Words | 2 Pages
  • WroldCom---Financial Accounting - 1739 Words
    WorldCom: A Culture of Dishonesty Ethics is a term that refers to a code of moral system that provides criteria for evaluating right and wrong. An ethical dilemma is a situation in which an individual or group is faced with a decision that test this code. One of the elements that many believe distinguishes a profession from other occupations is acceptance by it members of a responsibility for the interest of those it serves. . Accounting ethics is a field of professional ethics which pertains...
    1,739 Words | 5 Pages
  • Unethical Behavior of Financial Accounting
    Accounting can be best described as a type of tool or language put in place in order to provide appropriate information with regards to the financial position of an organization, corporate or business. With this kind of information, it will always be critical to investors as it provides them with relevant and thorough information that could turn out to be the deciding factor whether to invest or not to invest in a particular organization. Hence, it is very common to find unethical behavior in...
    340 Words | 2 Pages
  • Effect of Unethical Behavior in Accounting
    ACC 291 Effect of Unethical Behavior in Accounting When describing accounting, it can be defined, as a type of method used to provide information with regards to the financial position of a company or an organization. The information provided to investors is imperative because it provides the investor with valuable information that can lead to their determination as to whether they should decide to invest or not to invest in a specific organization. Consequently, because of unethical...
    674 Words | 2 Pages
  • Synthesis On Effects Of Accounting Fraud
    Executive Summary This paper objectify and evaluate the events that occurred prior (causes) and subsequent (outcome) to the fraud, and the accounting schemes employed to get the fraud done. It presents examples of companies who have used inappropriate accounting practices. Enron, WorldCom, Tyco, HealthSouth and Adelphia were selected for analysis because of the availability of information regarding specific events occured before, during and after the fraud period as well as the ethical...
    7,226 Words | 21 Pages
  • Accounting Fraud at Worldcom - 739 Words
    Accounting Fraud at WorldCom LDDS began operations in 1984 offering services to local retail and commercial customers in the southern states. It was initially a loss making enterprise, and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less than a year to make the company profitable. By the end of 1993, LDDS was the fourth largest long distance carrier in the United States. After a shareholder vote in May 1995, the company officially came to be known as WorldCom. WorldCom...
    739 Words | 3 Pages
  • Accounting Fraud at Worldcom 3
    Accounting Fraud at WorldCom 1) What are the pressures that lead executives and managers to “cook the books?” After the rapid evolution of the telecommunication industry in the 1990s, WorldCom shifted its strategy to focus on building revenues and acquiring capacity sufficient to handle expected growth. Their biggest goal was to be the No. 1 stock on Wall Street rather than capturing the market share. As a result, their Expense-to-Revenue (E/R) Ratio was their measurement for their main...
    3,340 Words | 10 Pages
  • Enron Accounting Fault - 371 Words
    Enron is frequently given as an example of creative accounting. It is also given as a good example of accounting fraud and insider trading. This is a good example of creative accounting taken too far - not many would disagree that it was accounting fraud, although some would say they were just unlucky to get caught. after all, the auditors were Arthur Anderson, at the time one of the most respected auditing firms. Creative Accounting – Example 1 – Creating multiple trading entities The...
    371 Words | 2 Pages
  • The Ethics of Creative Accounting - 1159 Words
    THE ETHICS OF CREATIVE ACCOUNTING Introduction: In the accounting world, the general rule is that accounts should give a true and fair view. Under local and international law, a professionally experienced accountant has a responsibility to meet the terms, a corporation has a legal responsibility to meet the terms, and auditors have a legal responsibility to give some species of judgment on compliance. Although the function of accounting principles and other rules, creative accounting has...
    1,159 Words | 4 Pages
  • Accounting Fraud at Worldcomm - 3682 Words
    Introduction By June 2002, it had become evident to the SEC that WorldCom had engaged in a significant corporate accounting fraud scheme which had overstated pretax income by about $7 billion since 1999. At the time, this was the largest deliberate misstatement in US corporate history. Although there are many interesting elements and players involved with this incident, for the purpose of this case study I will focus on the role played by Betty Vinson, the Director of Management Reporting...
    3,682 Words | 10 Pages
  • Importance Ethics in Accounting - 530 Words
    Public outrage over the financial crisis that put our economy in recession demanded some type of reform to prevent this from happening again. The general notion, however, was that this was not foreseeable and couldn’t have been prevented with rules in place. So, the best thing in banker’s eyes or proponents of a self regulating economy was not to mess with what already works and do nothing. Because of the widespread economic instability some type of action was needed. The government has come...
    530 Words | 2 Pages
  • Unethical Behavior in Accounting - 371 Words
    Accounting could best be described as a type of mechanism or language put in place in order to provide information with regards to the financial position of an organization or business. This type of information is critical to investors as it provides them with important and detailed information that could turn out to be the determining factor as to their decisions to invest or not to invest in a particular organization. Therefore, it is not uncommon to find unethical behavior in accounting as...
    371 Words | 2 Pages
  • Arthur Andersen: Questionable Accounting Practices
    Arthur Andersen: Questionable Accounting Practices Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clarence DeLany. After 90 years of hard work, this accounting firm we become known as one of the Big Five largest accounting firms in the United States. Andersen set standards for the accounting profession and advanced new initiatives on the strength of its then undeniable integrity. By the 1980s, standards throughout the industry fell as accountancy firms...
    633 Words | 2 Pages
  • Corporate Scandals: How Greed Consumed the American Dream
    Corporate Scandals: How Greed Consumed the American Dream Enron is not even at the top of the list. More and more corporate scandals are happening in America. Why have these scandals just shown up in recent years? What causes these corporations to lie and be deceitful towards investors? Though once seen as legitimate, fair, honest, and respectable, corporations have arrived at a stage of greed and deception. This can be explained by a number of factors such as the how the stock market works,...
    1,995 Words | 5 Pages
  • Analysis of “Predicting Material Accounting Misstatements”
    I chose to analyze the article called “Predicting Material Accounting Misstatements” co-authored by Patricia Dechow, Weili Ge, Chad Larson, and Richard Sloan. The authors of this article had the goal of showing its intended audience how they developed a database, recognized similar characteristics among misstating firms, and used the information gathered to develop a model to predict accounting misstatements. The subject of misstating financial statements (also know as earnings management) is...
    914 Words | 3 Pages
  • The nature, incidence and ethical issues of creative accounting
    The nature, incidence and ethical issues of creative accounting 1.1 Introduction Creative accounting is also called “Earnings management” which is known as the manipulation of financial information. The term can be defined in many ways. Initially we define it as 'a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business' (Naser, 1993, p.59). Creative accounting, at root, is the origin of numerous accounting frauds....
    4,392 Words | 12 Pages
  • Business Ethics- Accounting Irregularities at Worldcom and Arthur Andersen
    Business ethics is an area of ethics that examines ethical rules and principles within a commercial perspective using cases such as: Accounting Irregularities at WorldCom and Arthur Andersen…No More: What Went Wrong? (Business Ethics 4th Ed: Cases 5 & 6 pg.101-109), both clearly present various moral and ethical problems that arise that are real life business scenarios as well as question the impact of certain ‘special’ duties/obligations that apply to particular individuals and employees who...
    4,546 Words | 12 Pages
  • Rule Base and Principle Base Accounting Standard
    Introduction The parade of corporate accounting scandals of the last decade, with lion’s share occurring in 2002, has developed deep antipathy and distrust towards corporations and their reporting practices, and casted doubts on the opinions of audit firms. As majority of these accounting frauds occurred in the US (See Appendix), there was a widely-held view that rules-based accounting standards have allowed failure of large corporations like Enron and World Com, since US GAAP is perceived to...
    3,207 Words | 11 Pages
  • Case Analysis Accounting Fraud at World Com
    Running head: CASE ANALYSIS OF THE ACCOUNTING FRAUD AT WORLDCOM Case Analysis of the Accounting Fraud at WorldCom Angela Crossley Troy University October 27, 2008 History The origin of WorldCom can be traced back to 1983. The CEO, Bernard J. Ebbers, of WorldCom had very interesting beginnings. He invested in Long Distance Discount Services (LLDS) with eight other investors, and believed that the telecommunications industry was a very good business venture. In the...
    1,989 Words | 6 Pages
  • Accounting 371 CA1-6 pg 26
    Accounting 371 CA1-6 pg 26 Accounting quantifies operations, summarizing information, giving people the ability to see a situation from different perspectives. It's one thing to look at sales numbers for the year, but when you combine that with expenses, you can derive many issues, such as if the expenses are too high for sales or if payroll is unusually low, you can make certain decisions about those areas. Accounting numbers help in making sound decisions based on real data and...
    947 Words | 3 Pages
  • The problems of accounting fraud. To what extent can it be detected and controlled?
    THE QUESTION: Discuss the problems of accounting fraud. To what extent can it be detected and controlled? Accounting fraud is catastrophic to countries’ economy and becomes the issue of concern recently. Accounting fraud is the result of balancing between increasing benefits and decreasing expenses. In addition, accounting fraud, which is also called financial statement fraud, is misreporting with the intention of the firms in order to obtain wrongfully benefit and avoid a detriment (David,...
    730 Words | 2 Pages
  • Principles-Based Versus Rules-Based Accounting Standards: the Influence of Standard Precision and Audit Committee Strength on Financial Reporting Decisions
    THE ACCOUNTING REVIEW Vol. 86, No. 3 2011 pp. 747–767 American Accounting Association DOI: 10.2308/accr.00000045 Principles-Based versus Rules-Based Accounting Standards: The Influence of Standard Precision and Audit Committee Strength on Financial Reporting Decisions Christopher P. Agoglia University of Massachusetts Amherst Timothy S. Doupnik University of South Carolina George T. Tsakumis Drexel University ABSTRACT: Recent accounting scandals have resulted in regulatory initiatives...
    9,855 Words | 31 Pages
  • Fraud Case - 5943 Words
    THE NATION’S NEWSPAPER BS2003-01b Collegiate Case Study Adelphia founder, 2 sons, 2 others arrested in fraud By David Lieberman and Greg Farrell www.usatodaycollege.com Accounting fraud Part II: The results “Creative accounting” is not a new technique, but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these...
    5,943 Words | 18 Pages
  • Case study - 462 Words
     CASE STUDY ATPB 313 – Accounting Theory & Practice SEM 2 2013/2014 (100 MARKS -10%) Instruction: Answer all of the following questions (10 marks for each question). CASE STUDY 1 (50 marks) Title: Motivation for earnings management among auditors in Malaysia Farisha, H., Hafiza, A. H., and Zalailah, S. (2012). Motivation for earnings management among auditors in Malaysia, Procedia - Social and Behavioral Sciences, 65(3), 239-246. Required: 1. In your own words, summarize...
    462 Words | 2 Pages
  • Worldcom & Enron Fraud & Bankruptcy
    WorldCom Fraud & Bankruptcy (21/07/2001); Assets: $107 billion Long Distance Discount Services, Inc. (LDDS) began in Hattiesburg, Mississippi. in 1983. The company name was changed to LDDS WorldCom in 1995, and later just WorldCom. The company’s growth under WorldCom was fueled primarily through acquisitions during the 1990s and reached its apex with the acquisition of MCI in 1998. WorldCom’s financial scandals and bankruptcy led that company to change its name in 2003 to MCI. The MCI name...
    927 Words | 3 Pages
  • Worldcom Scam - 4417 Words
    Enron and its Associates Used Questionable Accounting Practices Clearly, there have been cases where management knowingly deceived the auditors. Then there seem to be other instances where the accounting treatment envelope was pushed just a bit too far. In the case of Enron, David B. Duncan, the former Andersen partner in charge of the Enron audit who was the government's chief witness in the trial against Arthur Andersen, stood behind the decisions that resulted in the widespread use of...
    4,417 Words | 11 Pages
  • Worldcom - 2314 Words
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