Competitors Financial Analysis Sony’s three large business divisions: Electronics Entertainment Financial services Profitable businesses: Financial Services Music Pictures Devices *All electronics segments are declining (too BAD) Comparison of Sce and SPE => Electronics Segment lost money in four years and had almost no profit in two other years due to
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Professional Development Article: The CPA Journal Enron Ten Years Later: Lessons to Remember Acct 4501W- Auditing Concepts Professor Feller March 11‚ 2013 Summary In the article entitled Enron Ten Years Later: Lessons to Remember‚ the authors Anthony H. Catanach Jr. and J. Edward Ketz discuss the importance of learning from the mistakes made by the senior executives of Enron. The “off-balance sheet” that Andrew Fastow‚ the CFO of Enron‚ created to funnel tens of millions of dollars into
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Enron Case The internal controls that were ignored when LJM1 was created were one‚ LJM’s books were kept separate from Enron’s. LJM1 ignored some of Enron’s entries in the books that were missing. Outsiders owned less than 3% of the Special Purpose Entities equities. There was an error made by Arthur Andersen to let LJM’s financial statement to remain unconsolidated. If the financial statements had been consolidated‚ some of the errors could have been found. They may have even had some time to correct
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Two areas stand out as ones of particular concern. First‚ the rules apparently permitted the widespread use of market-to-market (MTM) accounting in areas for which it was not originally intended. Second‚ the 3 percent rule for outside ownership of SPEs was arguably too low to maintain genuine independence. An underlying issue was that corporate practice (e.g.‚ sophisticated online
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TOPIC Risk management with respect to Oil & Gas Industry INTRODUCTION India is the fifth largest consumer of energy in the world‚ and is likely to surpass Japan and Russia to become the world’s third biggest energy consumer by 2030. According to the International Energy Agency (IEA)‚ hydrocarbons satisfy major energy demand in India wherein coal and oil‚ together‚ represent about two-thirds of total energy use. Natural gas accounts for about 7 per cent share. India has about 5.7 billion barrels
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Skilling is quoted as saying that Enron was ""laser focused on earnings per share". Many of the SPE loan agreements Enron entered into contained price triggers where if Enron’s stock dropped below a designated level‚ Enron was required to provide additional stock to collateralize the loan and make significant cash payments. In the worst case scenario Enron might have been forced to dissolve and SPE and consolidate its assets and liabilities thus revealing losses. Such pressure to continually
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their losses through unscrupulous means. They would book hypothetical profits on projects and joint ventures that had not yet launched and on the day a deal was signed. They would hide their debts through the use of complex Special Purpose Entities (SPEs). They would solicit support from top tier investment banks by giving them lucrative deals to work on. All this and more was conducted with one clear objective in mind: to make as much money as possible through manipulation. Everyone was happy as long
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CASE 1.1 Enron Corporation “Think Straight‚ Talk Straight. “ This was the motto of Arthur Edward Andersen. He was the founder of the Arthur & Company‚ which was established to provide accounting‚ auditing and related services. Throughout his professional‚ Arthur E. Andersen career‚ relied on a simple‚ four-word motto to serve as a guiding principle in making important personal and professional decisions: “Think straight‚ Talk straight.” Andersen would prefer fewer clients‚ than having more
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nihil est factum‚ quam ut occideretur. 2 Ex hoc‚ qui sit status totius rei publicae‚ videre potes. 3 16. 4 Nostrae tamen causae non videntur homines defuturi: mirandum in modum profitentur‚ offerunt se‚ pollicentur. 5 Equidem cum spe sum maxima‚ tum maiore etiam animo‚ spe‚ superiores fore nos‚ animo‚ ut in hac re publica ne casum quidem ullum pertimescam. 6 Sed tamen se res sic habet: si diem nobis Clodius dixerit‚ tota Italia concurret‚ ut multiplicata gloria discedamus; sin autem vi agere conabitur
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Experiment‚ which was a psychological experiment that determined the roles of members in a society that became a fiasco (“Philip G. Zimbardo” 1). The experiment left emotional and mental scars on mock-prisoner lives. The Stanford Prison Experiment (SPE) illustrates the way a person changes when a label and power is all of a sudden given to hoax guards in order to control fraud prisoners. The experiment had a unit of people willing to help the study (“On the Ethics of Intervention…”1). Researchers
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