expand AIG and many political key figures asked him for advice. Because he gave advice to influential people and lobbied effectively‚ he was often given the benefit of the odubt when questionable practices within AIG became known. In the early 2000s there were several investigations into AIG aimed at clarifying questionable insurance practices and schemes used ot boost AIG’s revenue. As a result‚ Greenberg was asked to step down as the CEO in 2005 and he is currently the CEO of C.V. Starr & Co Inc. Greenberg
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dominated by the nationalist right-wing Bharatiya Janata Party(BJP)‚ abruptly canceled Enron’s $2.9 billion power project in Dabhol‚ located south of Bombay‚ the industrial heartland of India. This came as a huge blow to Rebecca P. Mark‚ the chairman and chief executive of Enron’s international power unit‚ who spearheaded the Houston-based energy giant’s international investment drive. Upon the news release‚ Enron’s share price fell immediately by about 10 percent to $33.5. Mark sprang to action to
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Under the common law‚ accountants may be found liable to the clients who hire them under several legal theories‚ including breach of contract‚ fraud‚ and negligence. Accountants owe a duty to use reasonable care‚ knowledge‚ skill‚ and judgment when providing auditing and other accounting services to a client. In other words‚ an accountant’s actions are measured against those of a “reasonable accountant” in similar circumstances. The development of GAAPs‚ GAASs‚ and other uniform accounting standards
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Enron employed several highly qualified PHDs in mathematics‚ physics‚ and economics. Enron continued to enter into contracts with customers and utilized a group of skilled employees to interpret‚ manage‚ and confine the high risks Enron was taking. Enron’s attempt to create a collection of partners that would permit employees to shift debt and losses off of the books would soon come to an end. With the help from Andersen Accounting firm‚ Enron would lose control of their illegal attempt to contain
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Following this‚ a synthesis and commentary on the topic of ethics in organizations is provided. Research: Ethics in Organizations Sims & Brinkmann (2003) analyze the ethical aspects of the Enron Corporation scandal. Sims & Brinkmann (2003) argue that Enron’s organizational culture shaped employees’ ethical behavior and was the main factor
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Luttrell‚ James P. January 2‚ 2015 Auditing Theory Mr. Red Feliciano Enron Corporation’s Case Analysis Reference: Auditing and Assurance Principles by Jose Ireneo‚ Shirley Ireneo and George James 1. A. Fastow is one of the most responsible because being the Chief Financial
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Houston‚ the bankruptcy of the company drew lots off attentions from business world. Questions were asked and lots of financial misstatements were revealed and Arthur Andersen – Enron’s external auditing and accounting firm in Houston‚ was involved. Stephens (2002) stated‚ Arthur Andersen who were responsible for managing Enron’s audits‚ had illegally destroyed paper and electronic documents related to their representation of Enron (p.24). The case soon went to the jury. Louwers et al. (2011) reported
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Week 8 – Final Exam Cherie A. Parker University of the Potomac BUS 502 – Managerial Economics DATE \@ "MMMM d‚ yyyy" October 19‚ 2014 Professor Denise Touhey Abstract Architectural design of firm may vary among companies. There are most common categories are business environment‚ strategy‚ and organizational architecture. Business environment of Andersen includes technology that was used effectively; structure of its markets‚ regulations which helped Andersen to grow along with its reputation
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A. The Implications for corporate governance and financial institutions In Enron’s case‚ we may see that the principle weakness of corporate governance today is the excessive concentration of power in the hands of top management. Enron involve allegations of massive accounting fraud and huge losses in shareholder value. In May 2002‚ the Business Roundtable released its Principles of Corporate Governance. This is a set of principles intended to assist corporate management and boards of directors
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Management‚ Enron‚ WorldCom‚ Global Crossing‚ and Qwest Communications. Especially Enron’s bankruptcy was a deadly strike of Andersen. Andersen’s collapses made an effect on the regulation on accounting ethics‚ for instance‚ the Sarbanes-Oxley Act passed by the congress in 2002. Enron Corporation has been accused of cooking the books and overstating company profits in its financial reports. In addition‚ Enron’s trading business adopted mark-to- market accounting‚ which meant that once
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