E. Boos – Week 2 – Assignment February 17‚ 2013 The Enron and WoldCom Scandals ENRON 1. The segment of Enron’s operations that got them into difficulties had several parts. They published misleading financial reports. They could not meet their bridge financing commitment with Barclay Bank because outside investors were not found. Because of this‚ they restated activities of JEDI and Chewco SPEs so they could be retroactively consolidated into Enron’s accounts. The SPEs
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amortized over periods benefited. (e) Repair tools are expensed when purchased. (f) Agricultural companies use market value for purposes of valuing crops. (g) Each enterprise is kept as a unit distinct from its owner or owners. (h) All significant postbalance sheet events are reported. (i) Revenue is recorded at point of sale. (j) All important aspects of bond indentures are presented in financial statements. (k) Rationale for accrual accounting. (l) The use of consolidated statements is justified
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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 utilized
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Roles and Duties of Auditors Taylor Hibma Taylor Hibma lives in New York City and began writing professionally in 2007. His articles have appeared primarily on the websites eHow and Pluck on Demand. Hibma has a bachelor’s degree in English and is pursuing a master’s degree in creative writing at the City College of New York. He has also received a certificate in filmmaking from the Digital Film Academy. Auditors are responsible for gathering and analyzing various types of financial information
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What is meant by the phrase ‘Evidence Based Practice’? Evidence-based practice can be described as “a framework of decisions that are made from previous knowledge that are derived from previous research” (University of Westminster‚ 2008). Evidence-based practice allows the practitioner to apply their knowledge to a situation that has been previously researched to allow them to make a well informed decision about future action(s). It has been used widely in the health care system for some years
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Assignment #1 Evidence: CRJS355 Real/ Physical Evidence Real or physical evidence is evidence that can be addressed to the court directly without any interposing of a testimony of witness other than what is required of the basis for such evidence. Real evidence and physical evidence is basically the same thing physical evidence is just object that has been involved in the actual crime scene or took place and played some type of part in it. But when it comes to real evidence it basically
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You are what you drive When you see different people driving different cars on the roads‚ will you give yourself a second to think whether there is something relationship between the certain cars and the drivers’ personality? There is a theory that people who drive certain cars share personality traits. Generally speaking‚ our choices may say something about our values and interests. To some extent‚ women tend to buy smaller cars and men are likely to buy larger cars. But there are many other
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atmosphere at Enron was highly competitive. Enron rewarded cleverness and pushing the envelope. Enron’s former president and CEO Jeffery Skilling encouraged employees to be "independent‚ innovative‚ and aggressive.") The aggressiveness of the culture at Enron was increased by a rigorous and threatening evaluation process for all employees that became known as "rank and yank." "Enron’s employees annually ranked their fellow employees on a 1 (best) to 5 (worst) scale. Each of the company’s divisions was arbitrarily
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When You Do Work You Give it Energy! Holly Beech Professor Evans SCI 110 Holly Beech Professor Evans SCI 110 31 January 2010 Whenever You Do Work You Give It Energy How would one know that working creates energy? Well the definition of energy might give a clue. “Energy can be defined as the ability to do work” (Tillery‚ Enger‚ and Ross‚ 2008‚ p. 59). If one were to think about this statement unscientifically‚ it might evoke the picture of some one being to tired‚ having no energy‚ or
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Enron case 1. What activities and practices of Enron’s management team do you believe were unethical and/ or illegal? Concealing debt By using SPEs‚ Enron’s balance sheet understated its liabilities and overstated its equity and earnings. Enron disclosed to its shareholders that it had hedged downside risk in its illiquid investments using special purpose entities which were lies. Enormous spending Extravagant expenses were rampant in the company which included enormous salary expenses
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