IN DEPENDENCE OF AUDITOR – ENRON AND ARTHUR ANDERSEN CASE Introduction The world economy in recent years has got some significant growth but also had quite serious scandals. They caused the shakes for many‚ both citizens and authorities. Therefore‚ it is a challenging time and it is the time for change. An absolutely necessity is to enhance the true reliable financial information because the success on the capital market depends on it. The key factor is to assure that auditors must take a completely
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Case 1.1 - Enron Corporation ------------------------------------------------- Discussion 1 The parties we believe to be most at fault for the crisis in this case are a) the Audit Firm engaged in the Enron audit (Arthur Andersen); b) Enron Management (Kenneth Lay‚ Jeffrey Skilling‚ Andrew Fastow; and c) the SEC. The Public Accounting Firm: Arthur Andersen The auditor has the responsibility to evaluate the risk of material fraud‚ including: * Incentives and motives for fraud : Enron was a fast
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University of Phoenix Nichelle Hoyt Ethics Awareness Inventory Analysis Interdisciplinary Capstone Course GEN 480 Ross Hopkins December 15‚ 2011 Ethics Awareness Inventory Analysis The Ethics Awareness Inventory refers to a sequence of extensive descriptions in lieu of four well-known categories of ethical viewpoint. These four categories of Ethics Awareness are as follow: Character‚ Obligation‚ Results‚ and Equity. The subject of this summary is the results
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not really interacting with the real world.”1 His remarks‚ actually taped during a November workshop‚ sparked a flurry of repercussions‚ culminating with Waltke’s resignation from the faculty of Reformed Theological Seminary in Orlando on April 6‚ 2010. That resignation has sparked outrage from many in the evangelical community who have denounced RTS as being too narrow-minded on this issue.2 The interpretation
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4.1 Enron Corporation and Anderson‚ LLP ----Analyzing the fall of two Giants This case results in the publishing of Sarbanes-Oxley Act of 2002 and relevant to the Securities and Exchange Commission. Also‚ it is related to SAS 103: Auditing‚ Quality Control‚ and Independence Standards and Rules. [1] What were the business risk Enron faced‚ and how did those risks increase the likelihood if material misstatements in Enron’s financial statements? The business risks Enron faced are as following:
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A case study for a manufacturing company called AcuScan‚ Inc was fulfilled. The case study involves "Operation Optimize" which plans to bring a new retail iScanner to the market. The study is given in two parts. The first part summarizes the case study and provides the assumptions‚ arguments problems‚ and issues of the situation. The second part is an executive summary written for Cliff O’Conner‚ CEO at AcuScan‚ Inc. including recommendations for a solution for the company’s crisis. Assumptions
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1. The “crisis of confidence” on the public accounting profession was not something that happened overnight and it is not the fault of one group of people or individuals. The accounting profession is partly to blame for this crisis‚ as the necessary rules‚ regulations and guidelines were not in place to hold companies and accounting firms responsible for their actions. The lack of regulations also allowed companies to partake in misleading transactions. These transactions were perfectly legal
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Rana Ahmed 900100959 MGMT 480 Dr. Mohamed Hatem 1st of March Case 1 Wave Riders Financial Ratios Needed to Analyze the Case: 1. Quick Ratio: (Current assets- Inventory)/Current Liabilities a) 1990: (1300-900)/483= 0.83 b) 1991: (1330-870)/512= 0.90 c) 1992: (1480-980)/595= 0.84 d) 1993: (1585-985)/680= 0.88 e) 1994: (1792-1242)/723= 0.76 2.Current Ratio: (Current Assets/Current Liabilities) a) 1990: 1300/483= 2.69 b) 1991: 1330/512= 2.59 c) 1992: 1480/595= 2.48 d) 1993: 1585/680= 2.33 e)
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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. The second category is strategy which includes Andersen’s primary goals‚ choice of business‚ and services. Finally‚ the last category is organizational architecture
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Management. Retrieved June 9‚ 2010‚ from‚ http://managementhelp.org/hr_mgmnt/hr_mgmnt.htm Perreault‚ W.D.‚ Cannon‚ J.P.‚ & McCarthy‚ E. J. (2009). Basic Marketing: A Marketing Strategy Planning Approach (17th ed.) Rothman‚ J.‚ & Sager‚ J.S. (1998). Case management: Integrating individual and community practice Schermerhorn‚ J. R.‚ Hunt‚ J. G.‚ & Osborn‚ R. N. (2005). Organizational Behavior (9th ed.).
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