In organizational behavioral theory‚ it is clear that in the Enron scandal‚ one can understand the elements that encourage white collar crime. Organizational crime has three categories‚ (1) organizational goals (2) organizational environment (3) and organizational structure (Weisburd‚ D. 1992) Clearly in Enron scandal‚ opportunity theory will argue that traders who had a hard time meeting its numbers will had a greater chance of utilizing illegal means to meet its goal. (P.65) I thought that the
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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. The terms accounting and financial reporting are often used as synonyms. Accounting
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whether the current business and regulatory environment is conducive for ethical behaviour. In addition‚ this paper not only talks about the Enron Corporation accounting ethical breach and its repercussions but also how Enron Corporation scandals were detected. Further‚ this paper gives recommendations on measures that could have been taken to prevent the scandals. Firms operate in a dynamic environment that keeps changing from time to time. Nevertheless‚ each and every firm must establish an ethical
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"Corporate Fraud" when you hear those words the first‚ most recent incident‚ many think of is The Enron Scandal. This same scandal produced the Public Company Accounting Reform and Investor Protection Act of 2002. This much needed act created the Public Company Accounting Oversight Board under the Security Exchange Commission ’s supervision. This board sets accounting standards and investigates Certified Public Accountants and companies to ensure they are following the guidelines set forth. This
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According to the title of the statement‚ scandals are useful in certain areas by calling our attention to some problems in ways that no speaker or reformer ever could. Undeniably‚ it is quite appealing staying at a normative position‚ and I consent insofar as scandals do have positive effect. Nevertheless‚ scandals can sometimes distract our attention from more important things and thus reflect their negative side. It’s true that the speaker’s assertion that scandals can be useful in politics‚ academia
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objectives that are open to change (Lamond‚ 2004). During a crisis‚ planning becomes even more important to an organization’s sustainability. For Arthur Andersen‚ strategic planning by management should have been implemented with regard to how the Enron crisis would affect organizational goals‚ a tactical plan to address the situation publicly and internally‚ an operational plan for conducting business during the crisis‚ and contingency planning to analyze every way possible to keep the organization
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Introduction The Purpose of the Case study is to assess the case of Enron mainly at the Corporate Governance problems. This Report will point out that why Independence of the Company’s Director is vital to clear operation of the organization; why successful Boards are compulsory for the companies to avoid the disasters like the Enron; and there must be the Working committee including the Non-Executive directors. Discussion The Enron Corporation was the American Commodities‚ energy & the company services
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their workers‚ customers‚ and surrounding community. Enron Corporation ’s fishy accounting practices‚ the 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
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which accounting standards should be issued because it disregards those made by intelligent bodies specifically in accounting and furthermore promotes inconsistency of accounting practices. Case 1-6 Accounting in Crisis A. In 2001‚ the Enron scandal unfolded. In summary the company used unethical practices which in turn led to
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Assignment #3 - Arthur Anderson: Questionable Accounting Practices February 11‚ 2013 Ethics And Advocacy For Hr Pro- HRM 522 Assignment #3 - Arthur Anderson: Questionable Accounting Practices 1. Discuss how the issues with the Arthur Anderson case may have played out differently if the Sarbanes-Oxley Act had been enacted in 1999. The provisions of Sarbanes-Oxley Act help minimize the likelihood of auditor failing to identify accounting irregularities by the following requirements:
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