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    Healthsouth Corp.

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    COMSATS INSTITUTE OF INFORMATION TECHNOLOGY CORPORATE GOVERNANCE : ACCOUNTING SCANDAL SUBMITTED To : Sir. Javaid Zafar Submitted by : Sana Munir MBO - II CORPORATE GOVERNANCE TABLE OF CONTENTS 1 COMPANY INTRODUCTION AND HISTORY................................... ...3 2 CORPORATE BUSINESS ACTIVITIES..............................................6 2.1 Rehabilitation Hospitals.................................................................6 2.2 Outpatient Therapy Services.....

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    If one has not heard the title “Woodstein”‚ then I sincerely doubt that they have read a newspaper in their life. This team consist of two journalist-one named Bob Woodward‚ and the other Carl Bernstein-at the peak of their career at the Washington Post. These two young journalist were paired together to cover an attempted break in at Democratic headquarters stationed at the Watergate Hotel in 1972. This usual routine story escalated into one of the most influential stories in America’s History‚

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    Healthsouth Fraud

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    occupational medical services. The company experienced rapid financial growth and numerous mergers and acquisitions in the mid-1990s‚ which continued to escalate until the fraudulent activity surfaced in 2002. It was at this time that the Enron and WorldCom scandals were discovered and the Sarbanes-Oxley Act was created. Pressure to meet Wall Street expectations pushed Scrushy and other senior management to “cook the books”. Income was artificially inflated‚ numbers were manipulated‚ and false accounts were

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    became and endured the heartbreak of having to be the one to take it down. No one wanted WorldCom to legitimately succeed more than Cynthia Cooper and part of her died with it. The Fraud Begins Later in her career Cooper began to unravel the scandal that became WorldCom. She lays

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    White Collar Crime

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    manipulated financial information and made improper financial transactions. Accounting firms helped conceal the illegal nature of these actions‚ which undermined investor confidence in the stock market and corporate governance in general. The corporate scandals that emerged in 2001 involved Enron‚ WorldCom‚ and the accounting firm of Arthur Andersen and were of national importance. Congress responded to these elaborate white-collar crimes by enacting the Public Company Accounting Reform and Investor Protection

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    and nurture the man‚ keep the home clean and tidy‚ and if any‚ watch after the children as they grow older. Interestingly enough‚ as time progressed this very different and separated list of common roles for each gender has changed. In the novel A Scandal in Bohemia by Arthur Conan Doyle‚ women’s gender roles are tested by the men in the surrounding society whereas the only woman of value is Miss Irene Adler.

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    fraud‚ and manipulation of the financial markets. In the late 1990’s and early 2000’s both publicly traded companies‚ WorldCom and Enron added weighted truth to the credibility of accounting and business ethics. Both Companies were involved in scandals that engaged in misrepresentation in financial statements and fraud. Enron was one of the world’s leading American energy company’s and in October 2001 Enron Corporation filed bankruptcy‚ this was due to the unethical behavior that Enron executives

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    Enrons Business Model

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    model of the times The Enron bubble was a prime example of the dominance of speculative finance in business. V. SRIDHAR MORE than two months after Enron‚ the seventh biggest corporation in the United States‚ filed for bankruptcy‚ the stench of scandal refuses to die. Shocking revelations about the company’s modus operandi continue to pour in. Public and media attention was initially focussed on the company’s close ties with the political establishment and the policy-making bureaucracy. However

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    Gas Crisis

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    United States. The energy crisis‚ combined with more interest in environmentalism‚ brought about a rise in interest in alternative sources of energy and fuel efficiency. Politically‚ the government struggled to deal with the crisis. The Watergate scandal erupted

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    Enron James

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    practices and pressuring Andersen to ignore the issues and allow his proposal. B. Lay being the founder and CEO of the Enron corporation was very much influential to its operations and decision making. He was one of the most responsible in the Enron scandal because of his financial crimes‚ bank fraud‚ making false statements to banks and creditors and many more. C. Skilling in the same way as Lay‚ was one of the most responsible too because of crimes such as bank fraud‚ wire fraud and securities fraud

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