"What happened at Arthur Anderson" and "Why?" Arthur Andersen‚ who used to be one of the “Big Five” largest accounting firms in the United States‚ strayed away from accepted policies and stuck in a string of accounting scandals‚ finally closed its doors after 90 years of business. The firm’s name was synonymous with trust‚ integrity and ethics during a long period of time‚ however‚ Andersen failed to withstand the pressure from the competition of consulting service. Thus‚ it leaded
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There were several internal control issues with Arthur Andersen (AA) that contributed to the Enron disaster. Firstly‚ AA gave Enron nonaudit services as well as audit services‚ meaning that AA could advise the structuring of transactions for desired disclosure outcomes and other work and later give an audit opinion on these transactions. This resulted in a blatant conflict of interest issue that many audit professionals did not recognize. Secondly‚ the “tone at the top” of AA did not encourage ethics
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Subject: Chief employee bonus: Conflict Interest. To: Ethics for Accountant From: Kyungwon Kwak Date: 03/07/2011 1. Ethics Case-Chief employee bonus The WGN Company has a bonus arrangement‚ which grants the financial vice president and other executives a $15‚000 bonus if the net income exceeds the previous year’s by $1‚000‚000. Noting that the current financial statements report an increase of $950‚000 in the net income‚ Vice President Jack Brickhouse asks Louise Boudreau‚ the controller
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Suleiman What is conflict of interest? Conflict of interest is not between conflicting interests only‚ but it is more about when a personal interest comes into conflict with an obligation to serve other’s interests. This type of ‘obligation’ is characterized by a relation between an (agent) who agrees to act in the interest of the (principal)‚ for example- among fiduciaries‚ such as executors and trustees. The subject matter: The subject matter regarding the conflict of interest topic is Egypt ’s
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Cynthia Claude Nkono Moanang 1009040 CORPORATE GOVERNANCE AND BUSINESS ETHICS ASSIGNMENT TOPIC: Principals (shareholders) – agent (managers) problem represents the conflict of interest between management and owners. For example‚ if shareholders cannot effectively monitor the managers’ behaviour‚ then managers may be tempted to use the firm’s assets for their own ends‚ all at the expenses of shareholders. Discuss the pros and cons of this statement with regard to duties of Board of Directors
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activities‚ interests‚ and opinions (AIO) characteristics of an individual used by researchers to create a psychographic profile of the individual; also called attitudes‚ interests‚ and opinions . When combined with quantifiable characteristics such as age‚ income‚ or education level‚ an AIO profile provides great insight into an individual’s likes and dislikes as a consumer. Product-specific AIOs‚ rather than general AIOs‚ may be used in new product development or copyrighting to predict consumer
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Nonprofit Conflict of Interest: A 3-Dimensional View. Jan Masaoka wrote the article back in July of 2010. She is a writer for Blue Avocado‚ which is a magazine for American non-profit. Blue Avocado is the semi-monthly newsletter of American Nonprofits‚ a membership organization that provides practical financial information and support to U.S. 501(c)(3) nonprofit organizations‚ staff‚ stakeholders and volunteers. The article I chose related to conflict of interest. Conflict of interest (COI) happens
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Assignment #3 - Arthur Anderson: Questionable Accounting Practices February 11‚ 2013 Ethics And Advocacy For Hr Pro- HRM 522 Assignment #3 - Arthur Anderson: Questionable Accounting Practices 1. Discuss how the issues with the Arthur Anderson case may have played out differently if the Sarbanes-Oxley Act had been enacted in 1999. The provisions of Sarbanes-Oxley Act help minimize the likelihood of auditor failing to identify accounting irregularities by the following requirements:
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Conflict of Interests In the film “Lone Star”‚ three of the characters‚ out of those two of them being the main characters have conflicts with the parents that birthed them. Pilar Cruz and her mother never quite see eye to eye on many topics and about certain people. The lead protagonist‚ Sam Deeds is constantly in the shadows of his father‚ while being the sheriff‚ he receives a great deal of turmoil for his leniency with residents of his town. While Otis Payne‚ one of the local bartenders‚ has
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of material misstatements in the financial statements for several reasons. Since Enron operated in other countries‚ there would be a foreign currency risks and those could lead to gains/losses not being properly calculated or accrued on hedging activities. By operating in foreign countries‚ there are political risks such as policy changes‚ lack of understanding of culture and business practices. The biggest risk is having the pressure to report good financial results. The deals with the special purpose
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