The different between negligence and fraud is intention. The critical issue in this case study is the responsibility of auditor. Should Ernst & Ernst be civilly liable for defrauded investors of First Securities Company of Chicago under Securities Exchange Act of 1934 under Rule 10b-5. According to Securities Exchange Act of 1934 under Rule 10b-5‚ plaintiff which was the defrauded investor Hochfelder needed to prove that Ernst & Ernst intentionally manipulate the escrows investors
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billion. By misrepresenting earnings reports while continuing to enjoy the revenue provided by the investors not privy to the true financial condition of Enron‚ the executives of Enron embezzled funds funneling in from investments while reporting fraudulent earnings to those investors; this not only proliferated more investments from current stockholders‚ but also attracted new investors desiring the enjoy the apparent financial gains enjoyed by the Enron corporation. Bethany McLean and Peter Elkind
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Securities Regulation Outline Introductory Material Financial Products. Two ways to raise money: taking out loans from the bank‚ or issuing securities on the public market. Bank Loans Money in exchange for a promise to pay. Usually secured by some collateral. Commercial lending: one bank is “lead arranger” for others. Reduces exposure. Securities Stock. An ownership interest. Common stock. Voting rights! Dividends. Get paid last in a liquidation. Preferred stock. No voting rights as long as
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Gary Porter Construction v. Fox Construction‚ Inc.‚ 2004 Ut.App. 354‚ 101 p.3d 371 (2004). Facts: The University of Utah was in need of a women’s Gymnastics training facility so they subcontracted Fox Construction‚ Inc. to complete the project. For the soil and ground work Fox Construction‚ Inc. subcontracted with Gary Porter Construction. Gary Porter Construction‚ Inc. performed their work based on specific plans as well as some work outside of the plans. The combined total from the planned
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WHEN DOES AN AGREEMENT BECOME A CONTRACT? (1) There must be some consideration for it According to Section-2(d) of the Indian Contract Act‚ 1872 “When‚ at the desire of the promisor‚ the promisee or any other person has done or abstained from doing‚ or does or abstains from doing‚ or promises to do or to abstain from doing‚ something‚ such act or abstinence or promise is called a consideration for the promise.” According to Section-25 “Agreement without consideration‚ void‚ unless it is in writing
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The critical issue in this case study is the responsibility of auditor. Should Ernst & Ernst be civilly liable for defrauded investors of First Securities Company of Chicago under Securities Exchange Act of 1934 under Rule 10b-5.  According to Securities Exchange Act of 1934 under Rule 10b-5‚ plaintiff which was the defrauded investor Hochfelder needed to prove that Ernst & Ernst intentionally manipulate the escrows investors.  Ernst & Ernst had audited First Securities Company
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Running Head: WHAT ARE THE DUTIES OF A DENTAL CLAIMS EXAMINER? WHAT DISCREPANCIES DOES A DENTAL CLAIMS EXAMINER LOOK FOR? A research paper by Valerie Estrada WESTECH Ms. Martinez MOA Class
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rationalization to commit fraud have plagued business organizations for many years. There are numerous ways that managers and employees can commit fraud. This makes it a necessity for businesses to have quality internal controls that help prevent fraudulent activity. However‚ even with the best set of controls businesses are still susceptible of fraud. This paper will concentrate on the case study concerning coupon accounting abuse and will answer questions pertaining to company controls‚ ways to prevent
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Topic 3: Contract Law *What is a contract? a legally enforceable agreement; that is‚ an agreement enforceable in a court *Types of contracts Number of parties: * Unilateral – one party (eg reward case) * Bilateral – two parties‚ both with mutual obligations * Multilateral – more than two parties‚ all with obligat0ions Form: * Simple Contracts: written; oral; part-written & part-oral * Need all elements of a contract ‚ including consideration * If all elements
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fCurrent Location 1. 2012FA-BUSI-2301-6001 2012FA-BUSI-2301-6001 2. Exams 3. Take Test: Exam 2 Menu Management Options * * * * * Expand All * Collapse All * 2012FA-BUSI-2301-6001 (2012FA-BUSI-2301-6001) * Textbooks * Syllabus * Instructor Info * Exams * Case Studies * Email * Power Points * Make a RTF File * Announcements * Check grade * Tools * Class Policies Take Test: Exam 2 Content
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