1) What did Arthur Andersen contribute to the Enron disaster? Arthur Andersen (AA) contributed to the Enron disaster when it has failed to the management by failing to have Enron establish and enforce its own internal control. There has been flaws to AA‘s internal control. There has been assumption that AA partners were too motivated by revenue recognition thus‚ overlooking several criteria when providing their services to Enron. Additionally‚ AA also recognised the retention of audit clients
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Paper On Baldwin Bicycle Company Submitted in partial fulfillment For the requirements in Management Accounting (ACC510M) AY 2010-2011‚ 3rd Trimester Submitted to: Professor Jolly B. Cruz Submitted by: Presenting Group 5 Kelvin L. Go Elmer V. Dela Cruz Joshua G. Soriano Jeffrey T. Tabangcura Kristian Jewel P. Taiño Grace Taguinod 26 February 2011 CASE BACKGROUND Baldwin Bicycle Company (BBC) is a mid-range full-line bicycle manufacturing company with 40 years’ experience
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Case 9 Enron: Questionable Accounting Leads to Collapse How did the corporate culture of Enron contribute to its bankruptcy? The corporate culture at Enron was centered on a twisted lack of ethical behavior based on greed and profit seeking. Top management set a tone in the workplace that encouraged risk and rule breaking in the name of revenue. Employees were compensated for unethical behavior that brought money into the company and terminated if they did not reach the monetary levels of
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2013 The Enron and WoldCom Scandals ENRON 1. The segment of Enron’s operations that got them into difficulties had several parts. They published misleading financial reports. They could not meet their bridge financing commitment with Barclay Bank because outside investors were not found. Because of this‚ they restated activities of JEDI and Chewco SPEs so they could be retroactively consolidated into Enron’s accounts. The SPEs helped to hide the inaccurate accounting records
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The rise and fall of Enron is a company that was lead to its own demise by it’s own leadership and ill business decisions. The motivational theories explained from the readings of Organization Behavior can correlate with the failure of Enron’s internal organization. Even though a company may appear to display successful business practices‚ the influence of leadership through management can ultimately lead the company to fail. Enron’s code of ethics prided itself on four key values; respect‚ integrity
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Enron: Tone at the Top The fall of Enron is not just one of the largest bankruptcies in U.S. history‚ but in my opinion‚ a landmark case study of the lack of business ethics in an organization. Enron’s downfall‚ along with the demise of Arthur Andersen‚ one of the largest public accounting firms at the time‚ brought about a swift change in U.S. regulations governing how publicly traded companies reported their financials. While the top brass at Enron pled ignorance to the fact that they had no control
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Enron Case Answer 1. Who were the key stakeholders involved in‚ or affected by‚ the collapse of Enron? How and to what degree were they hurt or helped by the actions of Enron management? Outline: Key stakeholders involved or affected by the collapse of Enron How were the key stakeholders hurt or helped by the actions of Enron management The degree of Enron management actions’ hurt or helps to the key stakeholders The key stakeholders involved or affected by the collapse of Enron were thousands
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AYB340 COMPANY ACCOUNTING TOPIC 1 - SOLUTIONS TO TUTORIAL QUESTIONS CASE STUDIES Case Study 1 - Accounting Policies The board of directors has resolved to change the accounting policy for treatment of advertising expenditure. Previously‚ advertising expenditure has been expensed as incurred. Following extensive market research‚ the board has taken the view that benefits from advertising expenditure in the form of product awareness and increased sales will be received by the company
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2001‚ the United States economy experienced a shock as Enron‚ the country’s 7th largest corporation‚ declared bankruptcy. Many people lost their jobs‚ and even more investors lost billions of stock dollars as shares collapsed. As the rubble was removed‚ many signs of unethical acts surfaced‚ and were found to be carried out by some of the principal parties in the company. This debacle not only affected the employees and investors of the company‚ but also affected the regulations and the credibility
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1. The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe are most responsible for that crisis. Briefly justify each of your choices. Following parties are believed to be the most responsible for the crisis. With any big organization going so bad‚ the blame starts with the top level executives‚ there was no different in this case. For Enron the blame started with Enron’s
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