(1) summarizes the factual situation The company was started off by Amelia. The company is a family software company that Aunt Amelia started. She started working in a spare room in her house and was able to bring other relatives together to invest together and form a company. The company was a success that is became part of Wall Street just three years ago. The company has being profitable and there haven’t being any issues associated with the accounting records or any financial data associated
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Enron and Ethics Failure is the best teacher not only for those who fail‚ but also for those who observe the failure. Thus‚ for many businesses the Enron scandal proved to be the greatest teacher. Since the fall of Enron‚ there have been several theories and examinations about why it failed as it was a corporation that no one imagined would ever crash. Based on research to date there are multiple reasons for Enron’s failure; however‚ one that stands out immensely is corporate disregard for ethics
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Trip Winkel Finance 303 May‚ 27 2005 Dr. Namorato The Enron Scandal Enron was established in 1930 as Northern Natural Gas Company and joined with three other companies to undertake this industry. The four companies eventually began to break apart between 1941 and 1947 as a result of a public stock offering. In 1979‚ Northern Natural Gas was placed under new management when it was bought by InterNorth Inc. In 1985‚ Kenneth Lay‚ CEO of Houston Natural Gas Company devised a transaction
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REWARD & RECOGNITION POLICY Introduction: Benefits of an Employee Recognition Program 1. Increased customer loyalty and retention; lower turnover. Employees who feel appreciated and respected will be more productive and motivated‚ and are likely to remain longer with the company. 2. Higher employee productivity overall. 3. Increased retention of mid to high performers. 4. Overall increased employee morale. Employees often go above and beyond what is expected of them in most cases. Showing
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Ethics is a system of moral principles. The society depends on ethics from people‚ companies and the government in order for a civilized world. What happens when an unethical behavior is done? What if it is done by a large corporation‚ large enough to hurt the economy? The Enron scandal is an example of a historical exposure of unethical behaviors within a company and it is also one of the largest corporate scandals in America. Enron started as a gas pipeline company. It soon expanded into the
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Case: The Fall of Enron Enron was so admired prior until 2000; they grew to a powerful company. In 1985‚ Internorth acquired Houston Natural Gas to form HNG/Internorth‚ a natural gas pipeline company. This company was renamed to Enron. At the time of Enron’s creation‚ the U.S. gas market was in the middle of deregulation. In 1985‚ rules were established that allowed gas users to realize the cost savings by purchasing gas at spot prices and separately contracting with pipeline firms for delivery
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statement: presents a summary of the business’s sources and uses of cash during the income statement period. Financial Report : Financial Report Form: Financial Report must be prepared according to the Standards of GAAP : generally accepted accounting principles for preparing the financial statements‚ these rules permit alternative accounting methods for some transactions. Furthermore‚ accountants have to interpret the rules as they apply GAAP in actual situations. The devil is in the details. The point
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Fall of Enron The History Enron began as a pipeline company in Houston in 1985. It profited by promising to deliver so many cubic feet to a particular utility or business on a particular day at a market price. That change with the deregulation of electrical power markets‚ a change due in part to lobbying from senior Enron officials. Under the direction of former Chairman Kenneth L. Lay‚ Enron expanded into an energy broker‚ trading electricity and other commodities. The Business of Enron Enron
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AUDITING II HOMEWORK “Internet Problem 14-1: Revenue Recognition Fraud” Chapter 14 Wahyunda Risa Putri 1210534008 Shabrina Alin Firstiana 1210534010 Atikah Galuh Wilandra1210534013 Lecturer : Suhernita‚ SE‚ ForeAcc‚ Akt. International Class Faculty of Economics Andalas University 2014 INTERNET PROBLEM 14-1: REVENUE RECOGNITION FRAUD The Securities and Exchange Commission (SEC) found that Bally Total Fitness Holding Corporation‚ a nationwide commercial operator of fitness centers‚ fraudulently
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1 Why did the external auditors and the board fail to detect the company’s true economic condition? For external auditors‚ the failures could be largely attributed to the lack of independence between external auditors and Enron and the existence of conflicts of interest. From 1993‚ Enron started to outsource its internal audit functions to Anderson. Besides‚ conflicts of interest gets aggravated when the cross-selling of consulting services by auditors increases a lot. And consulting fees to auditors
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