Fannie Mae case. Federal regulators noted a growing string of high profile scandals at major U.S. corporations in recent years. The number of fraud cases investigated by the Securities and Exchange Commission jumped 41 percent in the last three years (112 cases in 2001 compare to 79 cases investigated in 1998)‚ resulting in tens of millions of dollars in fines to settle the charges. I have decided to take a closer look at Fannie May. This company operates in the residential mortgage finance industry
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better known for creating a massive corporate accounting fraud that lead to the largest bankruptcy in U.S. history. Two investigate reports and subsequent court cases conclude that WorldCom executives were responsible for billions in fraudulent or unsupported accounting entries. How did this mammoth accounting scandal occur without anyone raising the alarm? Evidence suggests that Ebbers and Sullivan held considerable power and influence that prevented accounting staff from complaining‚ or even knowing
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Case 1a: Satyam Accounting Scandal Mahindra Satyam is an IT company in India that recently perpetrated a large accounting scandal. To complete this assignment‚ you should first conduct research using the Internet to better understand Satyam and its fraud. Second‚ use the Internet and your understanding of class material to answer the following questions. Questions: 1. (a) In general‚ what is the role of information asymmetry in accounting scandals? Information asymmetry generally
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company growth the prior year. The company‚ who was audited by Arthur Anderson‚ is in the process of denying accounting irregularities. The company fat cats or executives have made a fortune despite the recent bankruptcy and the invested employees/shareholders have suffered major financial losses. Who is the company? You would not be alone in immediately thinking of Enron and the scandal that involved Key Lay‚ also in 2002. However‚ the correct answer would be Global Crossing‚ a 5 year old company
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Conflict in Ethical Decision Making at WorldCom Kerry Seeley Business Ethics MT4200 National American University September 25‚ 2007 Craig Chaplin Abstract This paper explains how WorldCom began and where it’s at now. It didn’t take long for WorldCom to become the second largest long distance phone company. WorldCom provided a legal framework for people working in communication projects on an individual basis‚ mainly in Central America‚ but they also developed projects together with partners
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Like most business professions‚ there has to be a strong sense of ethics and responsibility. Especially professions like law or public accounting. They must have strong standards of integrity. In public accounting‚ people rely heavily on the information being provided on companies. Any mistakes or intentional cover up will have high costs to the economy and dire consequences. Even though there are laws and standards that regulate auditing‚ it does not completely stop or prevent firms from doing
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4052720 registration Management of vehicular traffic flow through advanced communications network and technology; Providing road and traffic information; Traffic information services; Transportation consulting services; Transportation information Lucent Group Incorporated April 5‚ 2011 4. 3234940 Registration Floor finishing preparation Buckeye International‚ Inc. June 15‚ 2005 5. 3330996 Registration MEDICAL DEVICES‚ NAMELY VERTEBRAL BODY REPLACEMENTS‚ SPINAL PROSTHETICS‚ SPINAL FUSION IMPLANTS
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electricity‚ natural gas‚ and communications. In the year 2000‚ Enron claimed revenues of over $100 billion. By the end of 2001‚ it was reported that Enron Corporation’s financial was sustained by a systematic and creatively planned accounting fraud known as the Enron Scandal. The company claimed bankruptcy in 2001‚ which was the largest‚ and most complex bankruptcy cases in United States history. By November 2004‚ Enron was given a plan of reorganization by the court. Enron Corporation’s name was
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millions of people‚ including workers and investors. All of the ethical scandals we researched were related to accounting frauds; mostly falsifying records on the accounting books such as unrecorded debts and higher assets. These actions led to non-existent company profits; ultimately misleading investors to become shareholders of what they thought were “good companies”. Arthur Andersen LLP was one of the “Big Five” accounting firms before having to surrender its licenses to practice as Certified
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Question 1 At the time Cynthia Cooper discovered the accounting fraud‚ WorldCom did not have a whistle-blower hotline process in place. Instead‚ Cynthia took on significant risks when she stepped over Scott Sullivan’s head and notified the audit committee chairman of her findings. Discuss the key criteria for the operation of an effective corporate whistle-blower hotline. Be sure to highlight potential pitfalls that should be avoided and reference professional codes‚ legislation and academic
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