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 issues
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Introduction In a time where every organization is looked at under a microscope the price of unethical behavior is expensive. Companies like World Com‚ Enron‚ AIG‚ Health South‚ and a host of other companies add to the growing list of entities involving unethical misconduct of some sort. This paper will point out the price a Tyco paid when his ethics were in question. In addition to the outcome of events surrounding Tyco and the punishment imposed on its CEO‚ ethical breaches are also prevalent
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Retrieved February 9‚ 2010 from http://www.nolo.com/article.cfm/objectId/78FC3C83-30C0-4E57-9F6C7E7F8B45E726/catID/B491956E-A152-424B-A2342A5861B5EACF/111/182/241/ART/ Crawford‚ C. (2005). Ex-WorldCom CEO Ebbers Guilty. Retrieved February 9‚ 2010 from http://money.cnn.com/2005/03/15/news/newsmakers/ebbers/ Hinman‚ L.M. (2002‚ March). A Moral Challenge: Business Ethics after Enron. Retrieved February 9‚ 2010 from http://ethics.sandiego.edu/LMH/op-ed/Enron/index.asp Smith‚ K.T. & Smith‚ L.M. (2003
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WorldCom Case Study: Lack of Leadership‚ Lack of Ethics Emily Fearnow ORG 500- Foundations of Effective Management Colorado State University – Global Campus Dr. Cheryl Lentz May 15‚ 2011 WorldCom Case Study: Lack of Leadership‚ Lack of Ethics A multitude of choices made by executives at WorldCom led to the ultimate demise of the company as it was previously known‚ the employees and their livelihoods’‚ and the trust of the American people. In a time when corporations
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Enron’s Questionable Transactions 1. The special purpose entities (SPEs) got Enron into trouble. 2. It is debatable whether Enron’s directors knew how profits were being made through the SPEs. Speculation is that they did have knowledge‚ but did not question the questionable procedures. Evidence that indicates the directors knew how profits were being made includes the following: • Andrew Fastow’s role in establishing the SPEs and falsely creating 3% independent investors in
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Just before the turn of the century and shortly afterward‚ the financial world saw some of the biggest corporate accounting scandals of all time. Corporate giants like Waste Management (1998)‚ Enron (2001)‚ and Tyco (2002) were all caught in the unethical practice of generating fictitious financial statements. All these companies did this buy using fraudulent accounting entries. Assets were inflated‚ sales numbers were inflated and huge debts were omitted from balance sheets. Another company that
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Ayusarita Satriani 311368 – IUP BUSINESS UGM Financial Management ENRON Resources: http://en.wikipedia.org/wiki/Enron_scandal ; http://news.bbc.co.uk/2/hi/business/1780075.stm; http://finance.laws.com/enron-scandal-summary Enron is an energy company that successfully grew from nowhere to be America’s seventh largest company‚ which has 21‚000 staff in more than 40 countries in 15 years. It was one of the world’s leading electricity‚ natural gas‚ communications‚ and pulp and paper companies
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“The Dotcom Gloom”: The Boom and Bust of the Dotcom Industry Money plops down on the counter to pay for a new pair of shoes. Plastic cards swipe through to purchase a side table. Some people argue that society’s obsession with material goods comes from greed and decadence‚ but really it goes deeper than that. It comes from the noble tradition of capitalism. In the 1990s‚ America watched as the traditional face to face interactions of capitalism changed. It was changed through the Internet and is
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Class 2 The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as: Expectations gap Which corporate report discusses subjects that include environmental‚ health and safety‚ philanthropic and other social impacts? Corporate social responsibility report According to the authors‚ ethical corporate behavior is expected to lead to: Higher profitability in the long-term The following would be a key control function
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3) Roots of the scandal The roots of the fraud and the role of internal auditors As explained above‚ the fraud was implemented by the former CEO Bernard Ebbers and commited by his financial director Scott D. Sullivan. The technique used by Worldcom was pretty simple; indeed‚ he cooked the books by saving pure operating expenses such as maintenance network in capital expenditure instead of expenses in order to hide its decreasing earnings and to maintain the price of Worldcom’s stock. In summary
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