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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of the Enron Scandal The Enron scandal is one that left a deep and ugly scar on the face of modern business. As a result of the scandal‚ thousands of people lost their jobs‚ some people lost their entire pensions‚ and all of the shareholders lost the money that they had invested in the corporation after it went bankrupt. I believe that Kenneth Lay‚ former Enron CEO‚ and Jeffrey Skilling behaved in an unethical manner without any form of justification‚ but the whistleblower‚ former Enron vice president
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What made Cesar Chavez an effective leader? Many individuals have attempted to start a union for farm workers. The only one to succeed‚ however‚ was Cesar Chavez. He was a man with great qualities. He had a clear goal‚ courage‚ he was willing to sacrifice and he was for the people and with the people. Cesar Chavez was an effective leader because he was for the people‚ practiced non-violent protest‚ and boycotted the grape industry. “Si se puede – It can be done!” was what Cesar Chavez said
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Part 3 The bankruptcy of Enron not only significantly impact the employment and pension of workers‚ but also the relevant major financial institutions‚ including investment Banks‚ commercial Banks‚ pension funds and mutual funds. On Feb. 14th‚ 2002‚ the international accounting standards foundation chairman and former Federal Reserve chairman Paul pointed out that the obvious problems in accounting and auditing profession has formed a kind of crisis after a long-term period of existence. A typical
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leaseback in 2009…………………………. 150‚000.00 Less: Accumulated amortization of deferred gain on sale-and-leaseback (2009-2011).. (90‚000.00) Stockholders’ Equity according to IFRS $8‚720‚000.00 Explanation of adjustments made to income and stockholder’s equity 1). Inventory: - Under U.S. GAAP‚ Bessrawl Corporation is allowed to report inventory on its balance sheet at lower of cost or market. Market in this case is defined as replacement cost ($180‚000) with net
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What made Canada a world leader in Human Rights? Experiences memory of the Holocaust and the horrors of discrimination had shaped Canada’s role as a world leader in human rights. Canada had done numerous measures to eliminate racial discrimination and as well as giving Canadians equal rights they deserve. Such as drafting the Universal Declaration of Human Rights‚ Ontario Human rights code‚ Canadian Human rights Act‚ and as well as the Canadian Charter of rights. First‚ Canada’s participation
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In October of 2001 the Enron scandal was revealed‚ which led to their bankruptcy. It was the biggest bankruptcy reorganization in American history at that time. In the movie Jeff Skilling suggest that money is the only thing that motivates people‚ and I agree with him. Money might not directly motivate everybody but it plays a part in everybody’s motivation. Money is the reason people stay in school longer than required‚ the reason people work‚ and the reason why people get out of bed in the morning
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The central text for this project is the film Enron: The Smartest Guys in the Room by filmmaker Alex Gibney. This film investigates‚ documents and then exposes the many moves that led to the collapse of Enron. The director focuses on the chief leaders of the corporation as his principal characters in order to develop the story as a human tragedy. Throughout the course of the film‚ each leading character is revealed. All players were found to be distinct in their strategies and methods. However
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What Is So Important About Cells? Cells are the most basic building block of all life as we know it. But what makes cells extremely important to living organisms‚ and why do we need cells anyway? A cell is “a usually microscopic structure containing nuclear and cytoplasmic material enclosed by a semipermeable membrane and‚ in plants‚ a cell wall; the basic structural unit of all organisms.” But what makes cells extremely important to living organisms‚ and why do we need cells anyway? Cells are
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Arthur Anderson & Co. was also to blame as they were the accountants for Enron. They were the ones with the expertise who should have known better and looked to fully explain and disclose what they knew. Anderson’s commitment is to the shareholders‚ not to their client and they needed to act in a way and present the statements fairly so that a user could make an informed decision and that the statements presented fairly. Enron is also to blame. They were focused on profits – which is not necessarily
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