Q.3. Is there anything else that can be done to curtail this sort of egregious business behaviour (scandals) other than legislation? Legislation is a good method to guide and regulate the business behavior. Besides‚ the education is very important. If the whole society and the whole business world can have the good consciousness and ethical environment‚ the legislation may not so important. Q.4. In each case discussed at some length in this chapter – Enron‚ Arthur Andersen‚ WorldCom‚ and Bernie
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Madoff Securities developed the NASDAQ system for the broadcasting of prices through the use of information technology. Certainly‚ Madoff was responsible for making some of his clients’ money. But‚ this money was made dishonestly with a cover from Friehling & Horowitz accounting firm (Knapp‚ 2013). Harry Markopolos tried vigorously to notify the SEC and the public about Madoff ’s behaviors‚ but without success. Whether dishonesty or/ and unskillfulness is the reason for the SEC ’s failure to detect
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4. Martha Stewart’s Lost Reputation Discussion of ethical issues 1. What was the basis of Martha Stewart’s reputation? 2. Why did MSO’s stock price decline due to Martha Stewart’s loss of reputation? 3. Who is Martha Stewart’s target market? 4. What qualities were associated with the Martha Stewart brand‚ before the controversy? Which of these were affected by the accusations of insider trading‚ and how? How would you find out for sure? 5. What level of sales and profits would MSO have
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ASSIGNEMENT: 1 MADOFF SECURITIES Submitted by Mohammed A Khan Submitted to Prof: Wendy Achilles Course: Acc 562 Advanced Auditing Dated: 10-25-2014 Introduction Since the ascent of money‚ different techniques have been developed and carried out to fool people of their assets. These methods have evolved together with advances in technology‚ and some have proved to be more efficient than other. One of the largest of these schemes ever carried out occurred in modern times in the United States
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Emerging issues in Accounting Below is the list of some of the emerging issues we have seen recently. These emerging issues have raised many questions on the functioning of accounting around the globe. Continuing demand for skilled professionals Globalization and International Financial Reporting Standards (IFRS) The accountant and Corporate scandals. The call for Auditor rotation. Need for Global Code of ethics Technology advances We will discuss one of the emerging issues in details. We will
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Perform further audit procedures- Test of Controls Perform further audit procedures – substantive procedures for investment transactions and year-end balances. Question 3: Describe the nature and purpose of a “peer review.” Would peer reviews of Friehling & Horowitz have likely resulted in the discovery of the Madoff fraud? Why or why not? "People do what is inspected‚ not what is expected." System Review: Independence‚ "Tone at the top‚" and Understanding of the CPA firm Engagement Review:
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The 10 Worst Corporate Accounting Scandals of All Time If there is one theme to rival terrorism for defining the last decade-and-a-half‚ it would have to be corporate greed and malfeasance. Many of the biggest corporate accounting scandals in history happened during that time. Here’s a chronological look back at some of the worst examples. Waste Management Scandal (1998) Company: Houston-based publicly traded waste management company What happened: Reported $1.7 billion in fake earnings. Main players:
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Chapter 7 Case – 7-54 "Going Concern" Please respond to the following: From the e-Activity‚ analyze the auditor’s responsibility to determine if a company can continue as a going concern. From your analysis‚ propose at least two (2) key factors that the auditor should consider when determining an entity’s ability to continue as a going concern. Provide a rationale to support your proposal. SAS 59‚ The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (AICPA‚ Professional
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an independent third-party to oversee operations‚ BMIS had a lack of segregation of duties‚ an anomaly in the industry. This weakness increases the risk for misappropriation of assets and allows for performance manipulation. BMIS was audited by Friehling and Horowitz‚ a virtually unknown accounting firm comprised of one partner in his late 70s‚ a secretary‚ and a single active accountant. The firm was not peer reviewed and since 1993 had claimed in writing to the American Institute of Certified Public
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Corporate Governance What were the failures in the Madoff’s affair ? Minor : Management‚ Technology and Entrepreneurship Students : ..................................... Rémi Caroff Ha-Phong Nguyen Hamza Sehaqui Professor :............................... Matthias Finger Lausanne‚ Spring 2013 Corporate governance | Bernard Madoff case Table of content 1. Introduction and problem statement ................................................................................................. 1
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