Mae’s accounting came under scrutiny because last year regulators found it had violated accounting rules on the treatment of derivatives used to hedge interest-rate risks. Fannie is struggling to shore up capital depleted by losses on derivatives. Fannie was $4.5 billion short of the capital it needed by Sept. 30 in 2005 to meet its minimum requirement. Fannie Mae also received a notice from the Securities and Exchange Commission‚ which opened an informal inquiry into the company’s accounting practices
Premium Accounting scandals Creative accounting Fraud
better known for creating a massive corporate accounting fraud that lead to the largest bankruptcy in U.S. history. Two investigate reports and subsequent court cases conclude that WorldCom executives were responsible for billions in fraudulent or unsupported accounting entries. How did this mammoth accounting scandal occur without anyone raising the alarm? Evidence suggests that Ebbers and Sullivan held considerable power and influence that prevented accounting staff from complaining‚ or even knowing
Premium Fraud Accounting scandals Corporate governance
expenses) In 1990‚ Don subjected accounting adjustment of decreasing of 2 mio doller‚ CEO denied In 1991 profit forecast has to be adjusted due to false profit projection 1. Was Don Russell a good controller for Cook and Spector‚ Inc.? Why or why not? Strengths Weaknesses tried to raise concern about the problem with the CEO Modernized the accounting system cost reductions were realized Allowed the possibility for accounting fraud by modernizing the accounting system Did’nt inform top-management
Premium Accountancy Fraud Finance
Diamond Foods 1. How did weaknesses in Diamond Foods’ internal controls contribute to the accounting scandal? The audit committee of Diamond’s board was conducting an investigation of Diamond’s accounting for certain crop payments to walnut growers. This is where the scandal sort of took off. Filings done to approve the accounting practices were signed off by the companies CEO and CFO. Then there was an independent audit committee who was assigned to probe the company’s practices. The committee
Premium Business ethics Auditing Corporate governance
VP 5 Slippery Slope-HealthSouth Questions: 1. Summarized the Video. Aaron Beam discusses with Stanford Graduate students his start of his career as a newly certified CPA. His career started at Life Mart where he meets Richard Scrushy who wastes no time on sizing up Aaron Beam. However‚ Life Mart is acquired a couple years later jeopardizing the employment of Aaron Beam‚ however‚ venture capitalists ask if anyone has a company idea to start up and Richard Scrushy’s name is thrown out. Richard Scrushy
Premium Fraud Richard M. Scrushy Stock market
EXPLAIN THE RESPECTIVE ROLES AND RESPONSIBILITIES OF MANAGEMENT AND AUDITORS IN THE PREVENTION AND DETECTION OF FRAUD. The primary responsibility for fraud detection lies with management. This arises due to a contractual duty of care. Directors are able to discharge their duty toward prevention and detection of fraud and error in many ways‚ for example: * Complying with the Combined Code on Corporate Governance * Developing a code of conduct‚ monitoring compliance and taking action against
Premium Fraud Auditing Internal control
Merger and Acquisition accounting in the UK and their effects to stock prices by Yan Shao 2006 A Dissertation presented in part consideration for the degree of MA in Finance and Investment Abstract There has been considerable controversy surrounding the accounting practices for mergers and acquisitions. The focus of this controversy has been on the differences in financial statements that arise under the two accounting methods: merger (pooling-ofinterests) (Add together the book
Premium Balance sheet International Financial Reporting Standards Generally Accepted Accounting Principles
PRESENTATION TOPIC: MERGERS AND ACQUISITIONS‚ MODERN THEORY OF CORPORATE CONTROL COURSE INSTRUCTOR: MIRIE MWANGI GROUP MEMBERS: STUDENT | REGISTRATION NUMBER | BANCY WANGUI | D61/60453/2011 | ISAAC NYAMORA | D61/66960/2011 | JACQUELYNE M. ODERO | D61/62818/2010 | JOSEPHINE M. ODERA | D61/63410/2010 | MATTHEWS WAUYE | D61/63904/2010 | SAMUEL GATHUA | D61/64121/2011 | TIM SILOMA | D61/60464/2011 | ABSTRACT In today’s globalised economy‚ mergers and acquisitions (M&A) are being increasingly
Premium Mergers and acquisitions
Contents Introduction "Workforce planning is about having the right talent with the right skills‚ at the right time and cost‚ to support the organization’s strategy. Workforce planning is a strategic response to changes in workforce demographics‚ business models and economic conditions – and in today’s environment‚ it’s more important than ever.” - Watson Wyatt Telecom’s industry is evolving at breakneck speed and the demands of the customer are forcing
Premium Human resource management Human resources
RESEARCH PROPOSAL TOPIC: AN INVESTIGATION ON THE IMPACT OF FULL ACQUISITION IN EUROPE‚ ASIA AND AFRICA IN THE LAST DACADE ON THE ACQUIRING AND TARGET COMPANIES INTRODUCTION While it is understood through several researches that targets companies’ shareholders realize stock market gains with acquisition announcement‚ a significant number of studies have found that corporate acquisition generates negative returns for the shareholders of the acquiring company. Baines‚ (1978)‚ Firth‚ (1980)
Premium Mergers and acquisitions Corporate finance Stock market