The Enron Kaiwing Ho Ethics‚ Governance & Accountability BU.135.301.U2.FA12 Professor Crain November 21‚ 2012 Enron Since Enron Corporation has been bankrupt there were 20‚000 employees lost their jobs‚ medical insurance and average severance pay was only $4500. However‚ the top executives were paid bonuses totaling $55 million. In 2001‚ employees lost $1.2 billion in retirement funds and retirees lost $2 billion in pension funds. Yet‚ Enron’s top executives cashed in $116 million
Premium Enron
The WorldCom Accounting Scandal WorldCom was started in Mississippi as a long distance telephone service provider in 1983 (Lyke and Jickling‚ 2). Over the next decade and a half‚ the company expanded to offer a whole range of telecommunication services through a series of mergers and acquisitions (Lyke and Jickling‚ 2). At its height‚ WorldCom was the largest long distance phone company in the United States and was one of the leading companies in the telecommunication market in the world‚ providing
Premium Enron Generally Accepted Accounting Principles Accounting scandals
The financial world was rocked by accounting scandals in the late 1990s and early 2000s. Companies such as Enron‚ Global Crossing and Tyco International collapsed under the weight of fraud and destroyed investor confidence in corporate accounting. But the biggest collapse was that of WorldCom. In 1983 Bernie Ebbers and several other people invested in a newly formed company in Clinton‚ Mississippi called Long Distance Discount Services‚ Inc. (LDDS). LDDS was a provider of long distance telephone
Premium Expense Accounting scandals Operating expense
Review of accounting ethics : The Enron Fraud Kemal Cankaya Strayer University Arlington Campus Financial Accounting Prof. Tony Somathiti February 1‚ 2013 The Enron Fraud “Enron‚ a Houston-based energy firm founded by Kenneth Lay‚ transformed itself over its sixteen years lifespan from an obscure gas pipeline concern to the world’s largest energy-trading company (both off and online). Enron has become an interstate and intrastate natural gas pipeline company
Premium Enron Accounting scandals Arthur Andersen
thousands and thousands of lives of Tutsis. It lasted more than 100 days and was the quickest killing spree that we have ever seen. It killed children‚ a lot of families. The Genocide was sparked when the Rwandan president Juvenal Habayirmana by getting shot down outside Kigali airport( he was a Hutu). The Genocide could’ve been prevented many many ways‚ outside leaders could have interfered with the whole mass killings and stopped Kalimanzara from supplying all the weapons. Tutsis also had a name
Premium Rwandan Genocide Rwanda Hutu
example‚ more than 90% of Tooth & Co Ltd was owned by the group‚ but the big shareholding were split into three parts each of which is under 50%. In this way‚ Tooth was consolidated by none of them. It could be said that Splavins‚ the head of the company‚ was intentionally to do that in that he could utilize the Accounting Standards‚ according to which‚ only parent holding more than 50 per cent of its subsidiaries should make both consolidated and separated financial statement. In fact‚ although the
Premium Auditing Internal control Audit
MINI CASE: THE FILURE OF CORPORATE GOVERNANCE AT ENRON 1.Which parts of the corporate governance system‚ internal and external‚ do you believe failed Enron the most? In the evaluation of the Enron’s case; by trying to see the very big picture‚ it is not only about that the internal part of the corporate governance system was failed or but also the external part of the corporate governance system was also failed. As noted on the last paragraph of the mini case‚ many people from different positions
Premium Corporate governance Enron Corporation
Case study on WorldCom THE WORLDCOM FRAUD:- Presented By: Pratik WorldCom’s Background • Awoke the sleeping giant by leading the telecom industry into profitability in the 90’s. • During the 1990’s‚ WorldCom was deeply involved in acquisitions and completed several “mega-deals” • Purchased over 60 firms in 2nd half of the 90’s • WorldCom moved into Internet and data traffic • Handled 50% of US Internet traffic • Handled 50% of e-mails worldwide WorldCom’s Background (cont.) • Purchased MCI for
Premium Auditing Balance sheet Capital expenditure
An Ethical Dilemma at WorldCom: A case study of Cynthia Cooper The Scenario One May afternoon‚ while sitting in his cubicle at WorldCom Inc. headquarters located in Clinton‚ Mississippi‚ Gene Morse was stunned to find an accounting entry for $500 million in expenses‚ which was not accounted for with any invoices. He immediately reported this entry to his boss‚ vice president of internal audit Cynthia Cooper (Pulliam & Solomon‚ 2002). Little did they know at the time that this discovery would begin
Premium Ethics Internal audit Morality
Enron: The Smartest Guys in the Room Importance of Accounting Accounting is important because it manages the checkbooks of company which are important to analyses and determine the success of the business by looking through the different account statements and translating the company documents. An accountant or accounting firm starts and maintains auditing of a company. Accounting is also important because it offers a great assistance in planning the future investments as well as being able
Premium United States Financial statements International Financial Reporting Standards