that: • Plans and designs of a good ethical work culture already exists‚ their implementation is what companies failed to do and continued to monitor in the entire business operations. • The scandals at all five firms involved fraudulent practices as well as a number of unethical activities carried out by top managers and executives (CEO‚ CFO‚ Chairman). • Need and greed were the most motivating factor in committing fraud. • Weak internal controls
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eBay and Online Auction Industry Analysis eBay was founded in 1995 and has grown into a multibillion dollar corporation. The online auction industry has grown dramatically since the 1990s. Like its competitors‚ eBay does not produce any goods. eBay’s business model is to make money from the movement of information through the Internet. It does not produce a tangible product but provides the service of joining independent sellers and buyers together. It makes its revenue by charging sellers commissions
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1. For nearly 90 years‚ Andersen had a culture of doing the right thing. Moral courage defined the organization. However‚ there was a gradual erosion of the culture. Name three cultural changes that contributed to Andersen’s problems and defend your position. The first cultural change was that Andersen embarked on a path that valued consulting service which charged hefty fees ahead of auditing in 1990s. Compared to its original major service‚ auditing that required accountants to insist independence
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From Evernote: | Midterm Cases | Chapter 1: Davis v. Baugh Indus. Contractors‚ Inc. Trial Court dismissed the suit saying it was property owner’s fault. Issue: An employee of the property owner was killed when a concrete wall collapsed. Should the risk of liability stay only on the property owner‚ or extend to a contractor? Rule: For the past forty years it has been the rule that liability belongs only to the property owner
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INDEX SR NO. | CONTENTS | Pg No | 1. | What is stock market? | 1 | 2. | What is fraud? | 3 | 3. | Definition of fraud | 4 | 4. | Fraud law & legal definition | 5 | 5. | Definition of scam | 7 | 6. | When stock fraud occurs | 8 | 7. | Financial statement fraud | 10 | 8. | Features of security scam | 12 | 9. | How to spot stock scams | 13 |
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Indian Contract Act 1872 Indian Contract Act 1872 is the main source of law regulating contracts in Indian law‚ as subsequently amended. It determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties. The
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Misrepresentation Step 1. Determine whether the meaning of the representation is false or not – objective test Step 2. Three possibilities of a misrepresentation: 1) It is a term of the contract; 2) It constitutes a collateral contract; 3) Does not acquire contractual status at all. Step 3. Results: 1) Rescission of the contract; 2) Damages in tort (if the tort of deceit or the tort of negligence can be made out) Smith v Lane & House Property Corp This case deals with the situation
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traded electricity and other commodities. However at the end of 2001 it was revealed that its reported financial condition was sustained mostly by systematic and creative accounting fraud. Many of Enron’s recorded assets and profits were inflated‚ fraudulent and non-existent. It was the biggest bankruptcy in US history and cost 4‚000 employees their jobs. 1.1 The Reasons for Scandal Top Level Management & Board of Directors – Enron Bent the Accounting rules to satisfy their own desires to earn
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• broker or dealer‚ investment advisor‚ or investment banking services; • legal services and expert services unrelated to the audit; 3. a) If I were an Equity investor‚ I would pursue legal action against the auditors if there was a reckless misrepresentation and lack of due diligence in verifying
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SUPPLEMENTARY MATERIALS FOR COMMERCIAL LAW COMPILED BY ELLEN MCINTOSH HOW TO PREPARE A CASE BRIEF Preparing a Case Brief for each of the cases on your course outline will enhance your understanding of the key elements in the case and will ensure that you are properly and completely prepare for class. Start by reading the case over quickly to gain a cursory understanding of it and then go back and look for the 5 key elements in every case. These 5 key elements are the
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