ENRON/ ANDERSEN SCANDAL To preserve the integrity of his reports, the accountants must insist upon absolute independence of judgment and action. The necessity of preserving this position of independence indicates certain standards of conduct. If the confidence of the public in the integrity of accountants’ reports is shaken, their value is gone (Arthur Andersen in a 1932 Lecture on Business Ethics). The purpose of accounting is fairly simple, that is to measure that the portrait the company’s
the auditees. In recent decades, many accounting frauds and company bankrupts because of lack of capability or lack of independence, such as Enron, WorldCom, Xerox, Waste Management Inc., HIH Insurance, etc. Especially the Enron and WorldCom bankruptcy forever altered the public’s view of auditor independence due to Andersen issued unqualified opinions on Enron 's financial statements (Lindberg & Beck, 2004). Audit independence is being growing
economic and financial objectives as well as legal obligations. The context of corporate failure exists within public and private entities. In the case of Enron, the company was widely regarded as one of the most innovative, best managed and rapidly growing firm in the United States months before it collapsed in 2001 (Jickling 2002). The case of Enron had proven that companies might fail due to both internal and external factors. Rankin et al. (2012, 366) identified that internal factors that can cause
company deployed a very clear and direct strategy, which was defined by Sam Walton in the 1960’s. The typical model of Walmart is to open new stores in different locations and also expanding current stores. Walmart has well-defined and healthy relationships with its key stakeholders which are; shareholders, company’s executives, consumers, communities, non-profit organisations etc. According to Walmart, the basic idea is that organisations adopting strategic management, require different set of practices
which assess the relationship between corporate governance and organizational performance. There are other researches, which also assess the quality of corporate governance, rather than its mere existence with the way finance functions in an organization. Again, the outcome of those literature is not consistent as some would say the corporate governance have a significant influence on the firms performance but on the other hand, some would say there are no relationship between the corporate governance
Enron had losses of $591 million and had $628 million in debt, by the end of 2000. The U.S. Securities and Exchange Commission (SEC) started an examination, Enron declared for bankruptcy under Chapter 11 of the United States Bankruptcy Code. Enron's $63.4 billion in resources made it the biggest corporate bankruptcy in U.S. Subsequently fiduciary responsibilities hold that fiduciaries must protect the interests of the laborers and retirees in their advantage arranges but Enron neglected
accounting ethics has gained significant interest within the past few years in tandem with the occurrences of various global accounting scandals. Accounting scandals such as the Lehman Brothers and Enron in a series of financial irregularities in the world. After the collapse of Enron, Arthur Andersen, and other similar inferences, the pressure for ethical or moral transparency has increased. Business ethics dilemmas are a result of the need to balance economic and social performance (Easterling
RELATIONSHIP BETWEEN AUDITOR INDEPENDENT, NON AUDIT FEES AND POLITICAL CONNECTION: GOING CONCERN OPINION CHAPTER ONE 1.0 INTRODUCTION This paper adds to the literature of auditor independent to examine the role of non-audit services and political connection in going concern opinion. Explicitly, it is constructed to explain the relationship between non-audit fees, political connection and auditor independent during political tsunami which serves as the basic issues also motivation for this paper
SYMBIOSIS INTERNATIONAL UNIVERSITY POST GRADUATE DEPARTMENT OF LAW SYMBIOSIS LAW SCHOOL PUNE LL.M. DISSERTATION ON “CORPORATE SOCIAL RESPONSIBILITY IN INDIA: WITH SPECIAL REFERENCE TO RURAL DEVELOPMENT ” UNDER THE GUIDANCE OF DR. BINDU RONALD, DEPUTY DIRECTOR, SYMBIOSIS LAW SCHOOL, PUNE AND PROF. SHIRISH KULKARNI, FACULTY, SYMBIOSIS LAW SCHOOL, PUNE SUBMITTED BY PRANJALI MADNANI LL.M. (2014-15) PRN. : 14010143064 Submitted in partial fulfillment of the requirement for LL.M. Degree in