Impact of Unethical Behavior The impact of unethical behavior is wide spread‚ and does unimaginable damage to people‚ and business alike. The results of unethical behavior on the grandest scale would be Enron‚ Tyco‚ and Global Crossing‚ or WorldCom. Greed led to accounting abuses‚ cover ups and every day people becoming whistle blowers. Manipulating financial reports is illegal and unethical because the financial records are supposed to show the core financial results of the business
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siphoning of profits at Adelphia Communications Corp.‚ allegations of tax fraud and lavish personal spending of company money at Tyco International and WorldCom Inc. ’s bid to hide billions of dollars worth of expenses are just a few examples of unethical activities. Scandals and bankruptcies in the United States at companies like Enron and WorldCom Inc. have focused attention on the abuse of the power entrusted to executives by
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Joint-Stock Company: A joint-stock company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company’s shares (certificates of ownership). This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company. In modern corporate
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Auditor’s Responsibilities in Fraud and Error Detection Auditing October 17‚ 2011 Auditor’s Responsibilities in Fraud and Error Detection In recent years‚ scandals such as Enron and WorldCom have not only brought up the question “Where were the auditors?‚” but have also brought to our nation’s attention that auditing of public companies must be done with more precision and must have guidelines on the proper way to account for different items. Fraud‚ illegal acts‚ and errors happen every day
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Joint Stock Company Company A company is an artificial person created by law‚ having a separate legal entity‚ with a perpetual succession and a common seal. It is an association of individuals for the purpose of earning profit. It has a capital divided into a number of shares‚ of which each member possesses one or more shares and which are transferable by its owners. Joint Stock Company has been defined by many eminent authors‚ jurists and institutions. Some of these definitions are
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From Dissolution to Disrepair On 25 December 1991‚ with the resignation of Mikhail Gorbachev‚ the Union of Soviet Socialist Republics (USSR) that had dominated international world affairs crumbled into a morass of disarray and was dissolved. From the ashes of the old republic‚ the new Russian Federation was formed the very next day on 26 December 1991establishing a sovereign state. After the dissolution of the USSR‚ the mantle of leadership was passed to the Russian Federation’s first president
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Many changes in financial reporting have taken place as a result of The Sarbanes-Oxley Act. This legislation was passed by congress in 2002. It introduced important modifications and standards to the regulatory requirements of financial practice and corporate governance for all publicly traded companies in the United States. The SOX act is composed of eleven titles and includes important provisions such as Section 404 that deals with reporting of internal control processes by corporate management
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Biological age 1 is a part of the age profile that refers to how old an individual feels in regards to how well their body and organs are functioning. Psychological age 2 refers to the impact that certain life events have had on one’s intelligence‚ learning ability‚ memory‚ or maturity. An individual’s social age is divided into three categorical influence‚ one being nonnormative 3‚ where events in their life are not a common occurrence and may happen rather unexpectedly. As Woolf’s 5 research suggests
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Intermediate Accounting Paper The Financial Accounting Standards Board (FASB) is a private‚ not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public ’s interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. It was created in 1973‚ replacing the Accounting Principles Board and the Committee
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Question 1 : Is there anything unique about L&H that made the company prone to engage in fraudulent accounting practices? The unique characteristics in L&H that made it prone to engage in fraudulent accounting practices were the rapid expansion and acquisition of companies beyond their boundaries‚ and the inability to oversee these operations. Another important factor that stands out is the lack of ethical values portrayed by the founders of L&H. The top management did not set code of ethics‚ but
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