Accounting scandals Essays

  • Top Accounting Scandals

    1106 Words  | 5 Pages

    Top Accounting Scandals In this article, we will talk about top 10 accounting scandals of all time. If you’re curious about the history of each, read them all in one go. Let’s get started. 1 # Scandal of Arthur Anderson Company: It happened in the year 1998. Arthur Anderson, a waste management company reported around $1.7 billion in fake earnings. They deliberately increased the time period of depreciation of their plant, equipment, and property. While the new CEO, A. Maurice Meyers and his team

  • Enron Accounting Scandal Analysis

    843 Words  | 4 Pages

    of the Generally Accepted Accounting Principles (GAAP). However in certain instances, entities don’t conform to the GAAP and fraudulently manipulate their financial reports

  • Summary: Groupon Accounting Scandal

    275 Words  | 2 Pages

    A company that was unethical accounting decisions that were made public was Groupon. Groupon accounting scandal was made public shortly after the company went public (four months) with share starting at $20. The company raised over 900 million dollars from the sale of their stock. However, of the 946 million that was made 810 million went to the CEO and other privileged investors by using a private offering. Groupon’s accounting irregularities were exposed when federal regulators began to question

  • Edith Harriss: Accounting Scandal

    405 Words  | 2 Pages

    I was worried that our accounts were going to be affected. You would never expect something like that to happen in our area. This is the first time I’ve ever heard of an accounting scandal in Virginia, especially Chesterfield. What’s the point of stealing? I didn't know that it was that easy to steal $800,000 just from being in charge of the money, and she got away with it for a pretty long time which is even more surprising.

  • Examples Of White Collar Crimes

    932 Words  | 4 Pages

    securities fraud. Subsequently, Ebbers was charged with conspiracy to commit, securities fraud, and several counts of falsifying files with the Security and Exchange Commission he was later on sentenced to 25 years in a federal prison. The WorldCom scandal and bankruptcy caused investors billions of dollars as well as numerous downsizing of employees. Furthermore, numerous customers ended up leaving the company with hopes to seek other opportunities with other companies that can provide them with sophisticated

  • Sarbanes-Oxley Act Of 2002: Internal Control Concerns At Enron

    391 Words  | 2 Pages

    The accounting scandals that occurred at Enron and WorldCom were due in part to a lack of internal controls (Edmonds, Olds, McNair, & Tsay, 2012). Edmonds et al. (2012) stated that internal control within an organization is a process that ascertains reliable financial reporting, efficient operations, and compliance with the financial laws and regulations. In order to ensure that the internal control concerns experienced at Enron and WorldCom did not occur again, the U.S. Congress enacted the Sarbanes-Oxley

  • Fraud In Enron's Failure

    821 Words  | 4 Pages

    models, it shows how a combination of CEO’s selfishness, financial incentive, shareholders’ expectations and subordinate silence as well as CEO’s dishonesty can do much to explain some of the findings highlighted in recent high-profile financial accounting scandals.” Cecchini et al. (2010) provided a methodology for detecting ‘management’ fraud using basic financial data based on ‘support vector machines’. A large experimental data set was collected, which included quantitative financial attributes for

  • The Pros And Cons Of The Enron Scandal

    976 Words  | 4 Pages

    negligence on Wall Street and on Main Street that has eroded global and domestic trust in U.S. markets. In the Enron scandal, corporate irresponsibility has provoked unprecedented outrage and multiple lawsuits from a range of stakeholders with demands for democratizing improving managerial accountability, structures of corporate

  • Worldcom Case Summary

    1079 Words  | 5 Pages

    world’s second largest telecommunications company WorldCom after the disclosure of massive accounting irregularities, filed for bankruptcy in the federal court in Manhattan in 2002. It provides a genuine case study in the failure of corporate governance and suggests a number of lessons in how to avoid its repetition. The fraud within WorldCom consisted of a number of so called “topside adjustments” to accounting entries to falsify declining earnings. These “adjustments” were improper drawdowns of reserves

  • Phar-Mor Inc Fraud

    1110 Words  | 5 Pages

    companies fraudulent financial reporting but some even help in guidance to continue fraud schemes. Andersen Accounting helps Waste Management in their fraudulent activities by issuing unqualified audit reports of the company’s false financial statements, and engaged in a secret agreement to write-off error of data over the periods of up to ten years and to change accounting practices. Andersen Accounting certified WorldCom’s false financial data of capitalized expenses and false account receivables of $11

  • The Pros And Cons Of The Sarbanes-Oxley Act

    860 Words  | 4 Pages

    and disadvantages for public organizations. Along with the passing of SOX, the Public Company Accounting Oversight Board, (PCAOB) was established to oversee and regulate the new changes for public organizations. Discussed below are some of the advantages and disadvantages SOX has prompted since it was passed. Advantages Despite the initial stigma surrounding the change SOX would require, some

  • Accounting And Business Ethics: Enron's Scandal

    1658 Words  | 7 Pages

    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

  • Day-Lee Foods Embezzlement Case Study

    772 Words  | 4 Pages

    Day-lee Foods Embezzlement case Who? Yasuyoshi Kato 40 years old Chief financial officer of Day-Lee Foods (Large Japanese meat packing company) Company based in Santa Fe Springs, California To explain all of this money, he would say that he was the inventor of Nintendo Biggest case of embezzlement in U.S. history (up to 1997) His identity is now protected impossible to find pictures of him online What is day-lee foods, inc Subsidiary of Nippon Meat Packers of Osaka5 The mother company

  • RIMOS Project Case Study Summary

    744 Words  | 3 Pages

    Problem 2: Obtain a $2 million funding for a project that failed twice Internal analysis Causes The Filtration Unit has not launched any product that succeeded in 5 years. The company loses $6 million annually because of the unit. Moreover, the team faces many difficulties. They are affected by two failures on a promising project. Since they are not productive enough, they lose trust from the other managers. In addition, the residential irrigation mini-oxidation system (RIMOS) is a new product that

  • Volkswagen (VW) Emission Scandal

    930 Words  | 4 Pages

    The Volkswagen (VW) emission scandal is not an isolated case in recent history wherein a global company faced a gargantuan problem that is almost next to impossible to resolve. British Petroleum paid a whopping $20 billion settlement five years after the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. (Griffin, et. al., 2015) Unfortunately, the Volkswagen scandal did irreparable damage to Germany's brand compared with British Petroleum or any other “trade scandal” because the case of VW was

  • Wells Fargo Billing Glitch In Wells Fargo

    755 Words  | 4 Pages

    On January 17, Wells Fargo had a huge billing glitch that messed with many people’s accounts. Wells Fargo is a financial services company headquartered in San Francisco. Wells Fargo double-charged an unknown number of customers due to a technical error. The glitch reportedly affects customers registered to pay their bills automatically online. Wells Fargo promised that they would refund any related fees or charges to their customers who received the glitch. Many of the people affected were voicing

  • Crazy Eddie Case Study Managerial Accounting

    1586 Words  | 7 Pages

    Crazy Eddie was a fast-growing consumer electronics chain in the 1980s. The founder of Crazy Eddie are Eddile Antar, and the key business position in this company are filled by Antar family’s members. In order to avoid paying more taxes on their business income, the Antar family had decided to skim large amounts of cash from their dairly business sales. The family made more money by skimming cash, and they deposited those cash in Israeli banks to avoid tracking in U.S. However, the family felt unsatisfied

  • Wal-Mart Ethical Case Study

    712 Words  | 3 Pages

    countries to disregard environmental degradation and violation of national labor laws (Sethi par.1). There were six cases related to unpaid work that made Wal-Mart to pay $1 billion in damages to U.S. employees (Sethi par.2). Wal-Mart has faced several scandals in overseas such as multiple cases of bribery. According to New York Times, Wal-Mart paid more than $24 million to Mexican officials and their internal reports indicated hundreds of bribery and frauds. There were 90 reports of bribery

  • Argumentative Essay: The Hollywood Walk Of Fame

    396 Words  | 2 Pages

    The Hollywood Walk of Fame is a very special place that visitors love to adore. When a celebrity passes away, they place flowers at the star. If there is an accident, fans come to pray together at the Hollywood star. When controversy strikes there is a situation on Hollywood Boulevard near the star. However, Wednesday was the first time in a long time where a star was so mutilated that charges will be pressed. A man took some sort of tool and allegedly decided to dig up Donald Trump's star for legal

  • Corporate Fraud Was Very High During The 2000's

    308 Words  | 2 Pages

    Corporate fraud was very high during the 2000s. Corporate executives will cover up debt or will engaged in other forms of unethical practices. The sole purpose of these companies were to play with numbers in order to lie to investors to continue to invest. When these businesses fell shareholders, creditors, and even employees lost billions. Companies like Enron and WorldCom are a perfect example of such acts. Enron was the seventh biggest firm in the United States however in October of 2001 they