Enron

As a result of financial fraud disasters such as Enron, WorldCom, and AIG there has been a growth in the past decade of how companies conduct full disclosure reporting. Enron, for example, misinformed and manipulated financial information to users of losses of its fiscal year statements. These scandals of fraud have also caused the Securities and Exchange Commission

The purpose of this paper is to highlight the role of external auditing in promoting good corporate governance. The role of auditors has been emphasized after the pass of the Sarbanes-Oxley Act as a response to the accounting scandal of Enron. Even though auditors are hired and paid by the company, their role is not to represent or act in favor of the company, but to watch and investigate the company’s financials to protect the public from any material misstatements that can affect their decisions

companies grew because Enron essentially believed that “saying the right words, turning around three times and throwing salt over your shoulder could somehow transform something without economic substance into something with economic substance. (SEC Historical Society)” Due to this misleading and fraudulent act, shareholders lost billions of dollars when the companies crashed and the share prices went down with it (Citeseer). After uncovering several scandals from companies such as Enron, Worldcom, and Tyco

White Collar Crime White collar crime is prevalent and brought to our attention more and more by the media since the mid to late 1990s. With the downfall of companies such as Enron, Tyco Toys and WorldCom MCI white collar criminals are facing lengthy prison sentences. Greed and personal vendettas are what have led our country to understand and gain more knowledge about these corporations and the corrupt CEOs that have brought them to their demise. “White collar crime is defined as various crimes

and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. The ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework, such as off-balance sheet transactions, misrepresentation of financial statements, inaccurate disclosure, manipulations with earnings, etc. The confronted accounting profession

order for democratic capitalism to remain in balance and provision the greatest output, a culture of moral, ethical, and spiritual values are paramount. Sans these basic values, capitalism will fail. Exemplifying such failure is the 2006 verdict of Enron founder Kenneth Lay and Chief Executive Jeffrey Skilling. Convicted of conspiracy and security and wire fraud, these two men were sentenced to 165 and 185 years in prison respectively. This scandal not only tore their families apart, but affected the

Andersen, the supervisor of the Enron account, found himself in deep hot water with the Enron Oil Company in Texas, as the SEC announced that an investigation into the accounting of Enron was pending (Ferrell, Fraedrich, Ferrell, 2011). On November 8, 2001, Enron was forced to present its financial statements of five years to which Andersen was the auditor (Ferrell, 2011). About five hundred and eighty-six million dollars in losses were ascertained and therefore, Enron, was forced into bankruptcy one

Cultural Values and Personal Ethics Paper All people have personal values and ethics, just as they have cultural values. Often times, those personal values and ethics may clash with those of their employer. As an example, as an individual, a person's ethical guidelines might require honesty, integrity and respect. If that individual works for a company that does not necessarily operate under those same tenets, the employee may well face an ethical dilemma. This paper looks into how personal values

Why do big companies take so much from each other? MCI, Inc. was an American telecommunication corporation, a subsidiary of Verizon Communications. In the article World-Class Scandal At WorldCom by David Hancock he discusses how “The corporation was formed as a result of the fusion of WorldCom and MCI Communications corporations, and used the name MCI WorldCom for a while and was succeeded by the WorldCom Company, before changing its name on April 12, 2003, as part of the corporation

The Sarbanes-Oxley Act of 2002 (SOX) was enacted to bring back public trust in markets. Building trust requires ethics within organizations. Through codes of ethics, organizations conduct themselves in a manner that promotes public trust. Through defining a code of ethics, organizations can follow, the market becomes fair for investors to have confidence in the integrity of the disclosures and financial reports given to them. The code of ethics includes the promotion of honest and ethical conduct