Ethics in Finance Case Study Essay

The problem solving methods that might be helpful to assist Jerry in making an ethical decision would be to establish trust with the patient and become aware of the problem. Then analyze the problems and decide on a plan with the patient. He will then want to make sure he reinforces the commitment to the patient and activate the plan. Last, he will follow through with the task and monitor everything until the situation is taken care of.

In this case, there are several conspirators who is involved in the fraud receiving punishment from either SEC or federal government. Robert Levin, the AMRE executive and major stockholder, and Dennie D.Brown, the company’s chief accounting officer, were subject to the punishment in the form of a huge amount of fine by the SEC and the federal government. This punishment came from reasons. After AMRE going public, the company have the obligation to publish its financial reports but its performance did not meet expectation. The investigation by SEC shows that Robert took the first step of this scam, fearing the sharp drop of AMRE’s stock price because of the poor performance of company. He abetted Brown, to practice three main schemes to present a false appearance of profitable and pleasant financial reports. Firstly, they instructed Walter W.Richardson, the company’s vice president of data processing, to enter fictitious unset leads in the lead bank and they originally deferred the advertising cost mutiplying “cost per lead” and “unset leads” amount, so that they deferred a portion of its advertising costs in an asset account. The capitalizing of advertising expenses allowed them to inflate the net income for the first quarter of fiscal 1988. Secondly, at the end of the third and fourth quarters of fiscal 1988, they added fictitious inventory to AMRE’s ending inventory records, and prepared bogus inventory count sheets for the auditors. Thirdly, they overstated the percentage

Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.

This $490 million came from the netting manipulation when they offset their expenses with unrelated gains on the sale of assets. The geography manipulation allowed them to move millions of dollars to different sections of the income statement to “make the financials look the way we want to show them” said James Koenig, one of the primary forces behind the scandal. However, none of the fraudulent activities would have gone unknown for so long without the aid of the auditors, Arthur Anderson LLP, involved with Waste Management.

The Enron and WorldCom scandals were arguably the incidents that permanently changed the procedures for accounting controls. In response to these incidents, the Sarbanes-Oxley Act (SOX) of 2002 was passed. Once the knowledge of these scandals was made public, a number of subsequent accounting scandals were discovered in public companies such as Tyco International, HealthSouth, and American Insurance Group. In addition, a then-employee-owned company, Post, Buckley, Schuh & Jernigan, Inc. (dba PBS&J, now known as “Atkins North America, Inc.”), was also hit by a similar accounting scandal. Henceforth, a case study of PBS&J is presented where we will examine the fraudulent transactions that

The second ethical problem in this case relates to the Rigas family’s use of publicly-held corporate funds as a personal “piggy bank.” The Rigases used the company jet for personal reasons “without approval of the Board of Directors”, on one occasion flying to Africa for a safari (Markon & Frank, 2002). On another, one of John Rigas’ sons used a corporate jet to pick up an actress friend of his (Grant, Young, & Nuzum, 2004). The former CFO claimed that Adelphia’s funds were used by one of Rigas’ sons to buy a condominium, and to build a $13M golf course (Grant, Young, & Nuzum,

If board of directors decides to rectify previous frauds, they would investigate into the event, take appropriate legal action against people involved and disclose previous frauds with the previous and current year financial statements. If they decide to cover-up their fraudulent practices; they may warn me to stay out of this business or threaten to dismiss me. Both decisions would have differing effects on external stakeholders.

Nurses are faced with ethical dilemmas every day. There are a lot of different beliefs surrounding ethics and the code of ethics. Ethics and ethical issues have always existed, that is why they have put in place the code of ethics. The American Nursing Association (ANA) Code of Ethics isa guideline to help nurses determine which course of action to pursue. Every minute many ethical decisions are made, some may not comply with guidelines and others the patient’s will never understand. In this case study the nurse is put in an uncomfortable position and has two find a way to comply with the family, the patient, and the doctor’s orders.How can she report to the doctor the information the daughter has told her? How she approached

Nurses are faced with ethical issues and dilemmas on a regular basis. Nurses must understand his or her values and morals to be able to deal adequately with the ethical issues he or she is faced with. Some ethical issues nurses are exposed to may be more difficult than others and the ethical decision making process is learned over time.

On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.

This memo is regarding Hamilton Corporation and the fraud that occurred. When people make decisions they don’t always do it with the right mindset. There are limitations in our judgment processes and we can identify methods to mitigate bias and improve judgment (KPMG Judgment Framework). The four common tendencies that cause limitations in our judgment processes are, availability, confirmation, overconfidence, and anchoring. In this memo I will explain each of the four tendencies, talk about which tendency I believe to have manifested in the Hamilton case, clarify issues relating to auditing the warranty reserve and describe the alternatives that should be considered in auditing the warranty reserve, and finally provide factors that

* Bo and Mo do explicitly say that it is up to Kevin to decide how to increase his productivity.

Imagine trusting your hard-earned money like your retirement savings to a financial adviser or Certified Public Accountants (CPA) only to lose it all in a fraudulent Ponzi scheme. In today’s world of business many organizations, financial planners and accountants are in the news due to the financial ethical breaches that have affected their customers, employees, and the general public. A CPA has to be responsible for their audits and take any punishments as a result of their mistakes, incompetence or illegal actions. CPAs are expected to have integrity in their work,

We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.

(1)It’s against the SEC laws and inconsistent with GAAP standards; unfair to stockholders; uncertainty about how long the company can cover up the deficiencies which keep growing with the company; honesty and integrity are challenged. (2)Loyalty to Eddie and the company is challenged. No more personal financial benefit can be generated from the rising stock price and the CFO position any more. Investors are still kept in the dark. (3) The company’s stock price may drop significantly when investors learn about the truth; company may face bankruptcy due to loss of public confidence. The wealth of Eddie’s whole family will shrink seriously. (4) While Eddie may