Enron Questionable Transactions Question 1 The question which segment of its operations got Enron into difficulties is simple to answer‚ everything. Almost every all segments of their operation were improper. First of all‚ they practice unethical and dishonest practices which victimized workers‚ consumers‚ taxpayers and stockholders. Enron created partnerships within their own organization which led to them creating new financial instruments‚ called SPE’s (special purpose entities) which was
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Anderson’s audit partners. However unlikely‚ Arthur Anderson managed to push company boundaries and imploy tactics of a blind eye and a deaf ear within companies such as Enron‚ WorldCom‚ etc. With that being said‚ one should not fall under the impression that AA acted alone or solely arranged for these occurrences i.e. Enron and WorldCom bankruptcies to take place; clients were also at fault! According to Barbara Ley Toffler‚ “When Berardino (AA’s CEO) would get up at a partners meeting‚ all that was ever
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(1993). Creative Financial Accounting. Prentice Hall International (UK) Limited. News‚ B. (2002). BBC News Business. Retrieved 2013‚ from news.bbc.co.uk: http://news.bbc.co.uk/2/hi/business/2080180.stm Robert Kaplan‚ H. B. (2005). Accounting Fraud at Worldcom. 3-9.
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Inside the WorldCom Scam Title: Pointing the Finger Question: The corporate scandal involving WorldCom regrettably illustrates improper cost transfers designed to achieve higher profit levels. WorldCom did not transfer the cost from leases from the balance sheet to the income statement as quickly as they should have. This had the effect of overstating assets on the balance sheet and net income on the income statement. Please watch this section of American Greed: Inside the WorldCom Scam: http://www
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Which segment of its operations got Enron into difficulties? The fall of Eron has understandably generated significant interest in the professional literature as well as in the popular press. The activities and events underlying Enron’s collapse are manifold‚ but several stand out as particularly noteworthy. One is the use of special purpose entities (SPEs). Although SPEs often serve legitimate economic purposes and are still in use today‚ Enron used several of them to hide debt and to overstate
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Case 2-1 Cynthia Cooper and WorldCom Cynthia Cooper details her trials and tribulations about her experiences at WorldCom in the book Extraordinary Circumstances: The Journey of a Corporate Whistleblower. The following excerpts from the book describe the actions she took to uncover the fraud at WorldCom and reactions of key players in the accounting department‚ top management‚ the audit committee and the external auditors. Cooper was first alerted to the fact that there may have been a problem
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Accounting‚ or accountancy‚ is the measurement‚ processing and communication of financial information about economic entities. Accounting‚ which has been called the "language of business"‚ measures the results of an organization ’s economic activities and conveys this information to a variety of users including investors‚ creditors‚ management‚ and regulators. Practitioners of accounting are known as accountants. Accounting can be divided into several fields including financial accounting‚ management
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com/article/business-fraud-culture-is-the-culprit Rezaee‚ Z. (2005). Causes‚ consequences‚ and detrence of financial statement fraud. Critical Perspectives on Accounting‚ 16(3)‚ 277-298 Sandberg‚ J.‚ Solomon‚ D.‚ & Blumenstein‚ R. (2002). Accounting Spot-Check Unearthed A Scandal in WorldCom ’s Books Zhou‚ W.‚ & Kapoor‚ G. (2010). Detecting evolutionary financial statement fraud. Decision Support Systems
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Bernie Ebbers should have gone to jail. I disagree with the 25 year length of his sentence but he is at least partially to blame for the WorldCom fiasco. I think the government used the length of the sentence to prove a point and the only prior sentence comparable to this was John J. Rigas from Adelphia Communications earlier in the year . I think the CFO Scott Sullivan got a light sentence and consciously knew what he was doing and could have put a stop to it. He should have been the good advisor
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White Collar Crime White collar crime is prevalent and brought to our attention more and more by the media since the mid to late 1990s. With the downfall of companies such as Enron‚ Tyco Toys and WorldCom MCI white collar criminals are facing lengthy prison sentences. Greed and personal vendettas are what have led our country to understand and gain more knowledge about these corporations and the corrupt CEOs that have brought them to their demise. “White collar crime is defined as various crimes
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