hands of some very greedy top executives and boards of trustees that chose to look the other way all because of one common denominator - greed. The tremendous pressure by stockholders and board members that is put upon companies and the executives that run them to out-perform the competition in an extremely competitive global marketplace can influence top executives and
in order to stop any future accounting fraud and contains provisions for companies to follow to prevent any corrupt behavior. SOX was created in response to major accounting scandals committed by corporations such as Enron. Enron Corporation was an American energy trading company who committed the largest audit fraud alongside Arthur Andersen and filed for one of the largest bankruptcies in history in 2001 after producing false numbers and committing fraud for years (“Enron’s Questionable Transactions”
INTRODUCTION Corporate Scandals also known as Accounting Scandals are business scandals that originate from the misstatement of financial reporting by the executives of public companies who are trusted to run these organizations. These misrepresentations happen through overstating revenues, understating expenses, Overstating assets or understating liabilities, use of fictitious and fraudulent transactions and direct falsification of financial statements to give a misleading impression of the companies'
THE ACCOUNTING FRAUD @ WORLDCOM: THE CAUSES, THE CHARACTERISTICS, THE CONSEQUENCES, AND THE LESSONS LEARNED by JAVIRIYAH ASHRAF A Thesis submitted in partial fulfillment of the requirements for Honors in the Major Program in Accounting in the College of Business Administration and in The Burnett Honors College at the University of Central Florida Orlando, Florida Spring Term 2011 Thesis Chair: Dr. Pamela Roush Abstract The economic prosperity of the late 1990s was characterized
accounting fraud and auditor legal liability c a S eS inc lu de d in t hiS Se ction 4 89 99 4.1 Enron Corporation and Andersen, LLP Analyzing the Fall of Two Giants . . . . . . . . . . . 4.2 Comptronix Corporation 4.3 Cendant Corporation . . . . . . . . . . . . . . . . . . . . . . Identifying Inherent Risk and Control Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . 111 119 127 137 Assessing the Control Environment and Evaluating Risk of Financial Statement
experienced by swelling corporate entities and multinational conglomerates. And at the height of this period of economic dynamism, it did appear that these corporate entities were leading the charge toward a new national prosperity. Sadly, the decade immediately thereafter would prove much of this unbridled success to be manufactured and much of the profit to be totally false. Faulty accounting practices would be revealed as a most insidious culprit as a mountain of corporate scandals became apparent
companies. Enron was a huge company that reached to remarkable heights but eventually collapsed due to improper business practises, accounting frauds, and unethical culture with in an organization. Top management of Enron had used their position & power in wrong way resulting bankruptcy of such a huge company in 2001. This report will examine the internal culture of the organisation as well as the leadership practices of its top management. Further in this report I will be explaining the disaster
CAUSES AND MEASURES OF CURBING FRAUD IN THE BANKING SECTOR. BY ESSIEN NSIKAK U. A RESEARCH PROJECT SUBMITED TO THE DEPARTMENT OF ACCOUNTING, COLLEGE OF BUSINESS AND SOCIAL SCIENCES, COVENANT UNIVERSITY, OTA. IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCE (B.sc) DEGREE IN ACCOUNTING. CERTIFICATION I certify that this project titled “The Analysis of the causes and measures of curbing fraud in the banking sector” was carried