Contingent Liability 1. Analyze why a company would prefer not to disclose its contingent liabilities. In order to understand why a company would or would not disclose his contingent liabilities it is important to know exactly what a contingent liability is. As I have learned throughout all of my accounting studies a liability is simply an obligation or debt that a business owes to an individual or an organization. Now there are many liabilities that include services‚ payroll‚ notes‚ and
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of field work and reporting” (AICPA). This is because the auditors should have been skeptical of Madoff’s bank account and Chase and should have looked into what that bank account was used for. The auditors should have also been skeptical about how Madoff was able to have a split-strike conversion strategy that he was able to yield “extraordinary results”. Due care was not exercised by the auditors because they did not perform independent verifications of the revenue‚ assets‚ liabilities of the client’s
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In the last 40 years or so‚ the business world has earned a bad reputation. Companies like Enron and individuals like Bernie Madoff‚ who perpetuated the stigma that profitable businesses must operate based on the shareholder strategy‚ have ruined public perception of an entire industry. What is often forgotten is that these companies and individuals are the minority. Every individual can stomp his feet and stand on his soap box and say how he would’ve acted differently if he was placed in the aforementioned
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20th Century Women Writers Prof. Christa Schneider September 16‚ 2009 The Corrupting Power of Money in Wide Sargasso Sea According to Bible folklore‚ Jesus is attributed to have stated that “the love of money is the root of all kinds of evil” (1 Tim. 6:10). While it is not entirely fair to blame money for any individual’s immortal acts‚ the lure of money often produces desperate choices for these individuals. In Jean Rhys’s novel‚ Wide Sargasso Sea‚ the theme of money and greed are exemplified
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Corporate crimes happen when the business enterprise use legitimate and illegitimate business practices. Crimes committed by the corporate enterprises vary and includes fraud‚ conspiracy‚ racketeering‚ environmental damage‚ or even homicide when agents of the company commit criminal acts to benefit the company or its shareholders. However‚ according to Alder et al. (2013)‚ multinational corporate crimes are a widespread and daily problem‚ so politicians have taken the opportunity to implement tougher
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Risk in America A little over a year ago I was a senior in high school‚ leaving school with the weekend ahead of me‚ ready to unwind‚ and enjoy the night with my friends. On my trip home my mother called me and asked if I could go out of my way to pick my sister up from school; reluctantly‚ I tell her that I will. Before that call my friends and I had established that I would be driving us to the senior class tailgate before the football game that night. Wanting to get to the tailgate faster‚ I
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(1) What is the goal of the firm? What are some of the problems involved in the use of profit maximization as the goal of the firm? How does the goal of maximization of shareholder wealth deal with those problems? Maximizing shareholder wealth just means modifying the goal of profit maximization to address the complexities of the operating environment. Shareholder wealth maximization is the best choice for the main goal of a business because the effects of all financial decisions are included
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Charles Ponzi .. The Scandal !!! By: Rawan Al-Deraibi Class of: Prof. Alan J. Pan Who is Ponzi?!! Born in 1882 in Parma‚ Itlay‚ Charles Ponzi was the infamous swindler who payed out returns (To give money in exchange for goods or services) with other investors’ money. The "Ponzi scheme" is named after him. After running a highly profitable and expansive investment scheme‚ Ponzi was arrested on August 12‚ 1920‚ and charged with 86 counts of mail fraud. Owing an estimated $7 million‚ he pleaded
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Insolvency Fraud A. Introduction Bankruptcy is a leading cause of concern for the government of the United States. According to The Washington Post‚ in 1991‚ bankruptcy cases are increasing by eighteen percent (Walsh). The legal definition of Bankruptcy is the permissible procedure for dealing with debt complications of individuals and businesses (United States Code: Title 11‚TITLE 11—BANKRUPTCY Legal Information Institute). Specifically‚ a case filed under any of the chapters of Title 11 of
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ethical behavior is on the rise although it will take a long time to recover from the scandals that rocked the world beginning with Waste Management in 1998 and following with Enron‚ WorldCom‚ Tyco‚ HealthSouth‚ Freddie Mac‚ AIG‚ Lehman Brothers‚ Bernie Madoff and Saytam in 2009. For 10 years unethical behavior and choices almost brought our country to its knees and even now many people are losing their homes and their jobs because the economy has still not fully recovered. In 1983 in a small coffee
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