Accounting scandals

In current business world, the magnitude of the corporate scandal is huge. In the past 15 years, many directors have breached their fiduciary and legal duty that caused many people loses their money. For instance, the amount of money that lost by the shareholders and stakeholders in Enron Scandal, Lehman Brother Scandal, WorldCom Scandal, Tyco Scandal, Satyam Scandal, and Bernie Madoff Scandal are more than $200 billion. The company can sue the company's director if they breach fiduciary and…

PCH PLC was recognized as a well-established IT company when it was listed in the CSE in 2010 but suddenly after two years from listing, the whole company was collapsed due to failures/frauds occurred within the company. The focus of this section is to discuss about the corporate governance failures/weaknesses of PCH PLC which affected to arise such failures/frauds within PCH PLC. Throughout this discussion it is expected evaluate the board structure & board balance, Chairman’s role as the CEO,…

Enron, the trading operation adopted mark to market accounting. That means that the revenues and expenses were accounted to the balance sheets as soon as the contracts have been signed. Contracts were obviously long term, and the credited revenues were expected revenues and the debited expenses were the expected costs of fulfilling the contract. Although the mark to market accounting practice even now has its value among the widely accepted accounting practices, Enron and its auditor Arthur…

Abstract APOC, founded in 1909 as Anglo Persian oil company, was bought by England over more than 51% of its stock when it was about to fail on the initiative of Winston Churcill. It was subsequently privatized by the Thatcher campaign in the 1980s and soon became a major oil and refining company, with interests in clean blacks (such as solar panels) and attention to security procedures. But is all this enough for such a global company? Introduction BP, over time, suffered from a chain of major…

As of last week albert Bacon Fall had secretly granted Harry F. Sinclair of the Mammoth Oil Company exclusive rights to the Teapot Dome in Wyoming on April 7, 1922. After Pres. Warren G. Harding had transferred supervision of the naval oil reserve lands from the Department of the interior, that’s when Fall granted Sinclair the oil rights. When leases and contrasts went under investigation by committees of the U.S. Senate . Fall and members of his family had received from an unknown source…

The men in the 19th century discovered the unbelievable properties of an unknown liquid. It turned out that by simple distillation, it could be metamorphosed into a lubricant and lighting oil, superior and much cheaper to those which were known till now. The only known substance which experienced this type of acceleration was gold during the gold rush. Oil was not an exception. The discovery of both of them intrigued the attention of major business tycoons. John D. Rockefeller was one of them.…

In the case of United States vs. Walter Liew, Liew is being charged with over 20 criminal counts, with one of them being misappropriation of trade secrets (Levine). Liew had gotten paid millions of dollars by a Chinese company to apprehend trade secrets of the American company Dupont in order to solidify the company in China. Liew, 56, living in California, received 28 million in order to bribe engineers and other employees for confidential paperwork that the Chinese company wanted. What was the…

Every year we hear of a sporting scandal that shocks fans around the world. In 2016 it was the FIFA corruptions scandal, the deflategate scandal of 2015, in 2012 the Lance Armstrong doping scandal, and many more in every sport imaginable. These events are horrible for fans, as their beloved sport become ruined by the greed and evil nature of just a select few. It spoils the image of a league or organization and makes all the parties involved look bad. In all these cases, the suspects are…

long time, Wells Fargo has managed to cultivate an excellent reputation as one of the most efficiently managed banking institutions in the United States. However, this immaculate reputation has been tarnished in the wake of the recent fake accounts scandal. Since the beginning of the decade, the employees of the bank have created millions of fake credit cards and bank accounts. From 2011 to 2016, this banking institution has managed to collect a staggering $2.6 million in consumer fees (Partnoy…

discussion with others just to avoid conflict. The main goal should be to find a medium between ignorance as bliss, and the constant absorption and worry about every little issue and dramatic scandal being reported and shared on social media. I think there is a huge imbalance in the media in regards to drama and scandals vs. conversation on real issues, and you don’t really realize it unless you do spend time away from it. There was a mention in one article about spending some time in isolation…