Creative accounting

The theory of accounting has been around for thousands of years. Accounting, also known as the language of business, is an information science used to collect, classify, and manipulate financial data for organizations and individuals, which has changed a lot throughout time. This field was established in 1494 by Luca Pacioli, an Italian mathematician. Throughout all these changes that have occurred since 1494, technology has become a major part in an accountant’s job. The advancement of…

Sherron Watkins blew the whistle on Enron in 2001 by sending a memo to Kenneth Lay, the founder of Enron, giving caution she knew the company was at a great risk of finding themselves in a dilemma. The dilemma would be the product of many financial accounting scandals. Enron is a company that buys and sales energy from different companies and according to Patrick Rogers, was worth $74 billion in 2001, and was developed by Kenneth Lay and Jeffrey Skilling in 1985. Enron would be a successful…

Page 1 of 4 General Findings After completing CVP analysis, breaking down the variable and fixed cost structure, and understanding the special order, I believe that going to a fixed cost structure would be in the best interest of the company. Outlined are the risk associated with this change, the probability of reaching the projected net income, and the results of the special order. Comparison of Cost Structure As suggested, Wall Street Burger Shoppe used the fixed cost structure in the months…

gws_rd=ssl#q=common+financial+statement+fraud+schemes+by+jamal+ahmad Cernusca, L. (2011). Ethics in accounting: The consequences of the Enron scandal. Agricultural Management, 13(3), 35-42. Retrieved from http://eds.b.ebscohost.com/eds/detail/detail?vid=2&sid=59e976ea-caa3-4b98-a718-e29420909cda%40sessionmgr114&hid=120&bdata=JnNpdGU9ZWRzLWxpdmU%3d#AN=67096081&db=bth Giroux, G. (2008). What went wrong? Accounting fraud and lessons from the recent scandals. Social Research, 75(4), 1205-1238.…

The price would like to control within the reasonable level, it should be properly allocate the cost of each products. Activity Based Costing may help to measure the ‘real’ cost of product and the further price making which is more nearly to the reasonable price. Second, there are wider ranges of products. Choi Fung Hong was developing and produces a lot of types of product and those products may classify to different product lines such as H2O Hydrating product. It may helpful on the comparing…

The purpose of this paper is to incorporate biblical principles to this course of Managerial Accounting. Being a Managerial Accountant requires a person to be responsible for other’s money in which God has appointed and entrusted that person. Every part of the accounting process requires the appointed person to be a good steward. In biblical times, Jesus told this parable in Luke 16:1-2, “There was once a rich man who had a servant who managed his property. The rich man was told that the…

Excel Not a Reliable Software for Accounting In 1,987 working with my father at his office, it was available pencils, papers and a printing calculator for accounting and that took forever. Then computers were implemented, and Excel made accounting easy. Still Excel needs for the user to create spreadsheets required for accounting. Accounting had evolved in the last years from manual to computerized systems. The use of Excel, which is considered a manual system in business, is not reliable for…

started acting dishonestly and more they cheated, more ideas they had to come up with in order to disguise the truth. Of course, they were exposed to stress and tension as they were performing bad and they had to manipulate the reality, they had to be creative and always invent new ways to cheat as failure was not an option. They did not stop acting like this even after the Valhalla Scandal where, for the first time, people doubted of the integrity, truthfulness and moral rectitude of Enron. To…

misrepresentation of accounting information which is directed to result in profit to an individual and group of people. We can say that any illegal activities done by an individual or a group with the intention of making more money for organization when caught by the authorities or by any other means comes under Accounting Scandal. There are several accounting practice, which are developed in order to avoid fraud in accounting process such as Generally Accepted Accounting Principles(GAAP),…

1. Identify and analyse the achievements of the Burns and Scapens framework for studying management accounting change Exclusion of some key routine job , as the line managers became more experienced in accounting with optimistic foreseeable visions that seized opportunities, this change was because of the new advancement in technology systems that helped in gathering and measuring, examining and communicate information within the organization and with other organizations too . A significant…