legislation centered on a new concept of regulation‚ but as a process which mandated that many major reforms be implemented as soon as possible (in some cases‚ within 30 days) on the precise schedule specified by Congress. In that sense‚ the Enron and WorldCom debacles provided the impetus of public outrage that forced into effect some of the most readily available reform proposals for publicly traded companies‚ many of which had existed for years without sufficient political imperative to be enacted.[1]
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Industry: service‚ labor‚ competence Characteristics of a partnership 1. mutual agency – all of them participate actively‚ partners act as agents of the partnership‚ can attend meetings as a representative‚ signing of contracts 2. limited life – dissolution upon death‚ insanity‚ mental incapability‚ etc. of a partner‚ easily ended/terminated‚ change of ownership structure 3. unlimited liability – the liabilities are extended to the personal assets and properties (general partner) ; liability to partnership
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American companies and international companies that registered equity or debt securities with the Securities and Exchange Commission and accounting firms that provide auditing services to them”. It’s a legislation executed in regards to Enron and WorldCom financial scandals in order to secure shareholders and general public from accounting errors and false processes in enterprise. It’s been also designed to refrain and punish all frauds and corruption‚ by enforcing penalties‚ and protecting workers
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Case Study: Enron Corporation Accounting Scandal 1. What is Enron Scandal? Formed in 1985 from a merger of Houston Natural Gas and Internorth‚ Enron Corp. was the first nationwide natural gas pipeline network. Over time‚ the firm’s business focus shifted from the regulated transportation of natural gas to unregulated energy trading markets. The guiding principle seems to have been that there was more money to be made in buying and selling financial contracts linked to the value of energy
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A professional judgment is a key factor in auditing. As a result of development of auditing and accounting industry‚ especially after a series of accounting fraud and auditing failure cases‚ such as Enron and Arthur Andersen‚ in the last decade‚ professional judgments is becoming a more and more important aspect for the independent auditing industry. Recently‚ many countries and professional bad issued more strict auditing standards to emphasize to this point. It means the auditor should be required
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Sarbanes-Oxley Act The Sarbanes-Oxley is a U.S. federal law that has generated much controversy‚ and involved the response to the financial scandals of some large corporations such as Enron‚ Tyco International‚ WorldCom and Peregrine Systems. These scandals brought down the public confidence in auditing and accounting firms. The law is named after Senator Paul Sarbanes Democratic Party and GOP Congressman Michael G. Oxley. It was passed by large majorities in both Congress and the Senate and covers
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statistics on the internet bubble‚ Frontline http://www.nethistory.info/History%20of%20the%20Internet/dotcom.html Lowenstein‚ R.‚ 2004 The Internet Bubble‚ Jonathan Wallace‚ http://www.spectacle.org/0101/bubble.html Metrick‚ A.‚ 2007 Tran‚ M.‚ 2002. WorldCom accounting scandal. Guardian‚ 9 August.
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2003). CEO’s and CFO’s that partake in falsifying statements also face strict penalties‚ up to ten years for knowing and up to twenty years if willing (Bumgardner‚ 2003). I think this part of the Act was in response to scandals such as Enron and Worldcom. The CEO’s and CFO’s of those corporations that participated in fraud were made examples of‚ but to keep CEO’s from participating in these frauds they made a law to detour them and to keep these type of people from having the legal defense of not
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Microeconomics July 7‚ 2010 JP Morgan/Chase JP Morgan is one of the oldest and financial firms with its leading financial Services. In order to understand how JP Morgan/Chase came to be one of the oldest financial service firms in the world we need to understand the background of the banking institution. The commercial banking started in the revolutionary war and played a major role in the growth of the nation’s economy. One of the first banks was The bank of New York in 1784
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Associate Level Material Weathering Worksheet Answer the lab questions for this week and summarize the lab experience using this form. Carefully read Ch. 7 of Geoscience Laboratory. Complete this week’s lab by filling in your responses to the questions from Geoscience Laboratory. Although you are only required to respond to the questions in this worksheet‚ you are encouraged to answer others from the text on your own. Questions and charts are from Geoscience Laboratory‚ 5th ed. (p. 117-130)
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