Enron scandal

Prudential The time when the protagonist Arthur Ryan was brought in as CEO, Prudential was charged with the largest investor fraud in US history. Prudential had defrauded investors of close to $8 billion and eventually had to shell out $371 million as settlements and fines. The most common solution to overcome the economic condition is layoffs. The critical time in highly competitive market leads Arthur Ryan to downsizing environment (p.1). Management decision in downsizing creates gap between…

Dallas Gold & Silver Exchange, a jewelry company, created and filed with the Commission materially inaccurate financial statements since 2009. I. John Benson, the Chief Financial Officer of DGSE, was found to manipulate the amounts of inventory for 2009 and 2010 by inflating millions of dollars (Jacobson, 2012). He exploited the inappropriate controls of DGSE and made some fraudulent accounting entries; He concealed them with false inventory details and management representation letter. Mr.…

HealthSouth & Fraud Risk Factors HealthSouth was faced with a number of incentives and pressures that contributed to its fraudulent actions. For instance, the doubling of pretax earnings in 2000 although sales only grew about 3%, management’s commitment to meeting the Wall Street analysts’ expectations, and the significant financial interest and business dealings that the directors had with the company. The financial interest of the directors certainly increased their motivation and drives to…

For the amount of crime scenes in the film Capitalism: A Love Story, Michael Moore, filmmaker of the 2009 documentary, stirs up the question of who’s taking and who is giving in our law abiding society. The film consists of witnessing families losing their homes due to bank foreclosures, and being taken advantage of - something nobody wants to go through. Corporations are being corrupted by the government. Governments are being run as corporations and they are being infiltrated by former…

In 1977, Crown cork and Seal Company was one of the largest companies in producing metal cans and crowns worldwide. After 20 years of going into liquidation, the Crown Company stand out to prove itself in the domestic and international metal container markets. They centered their production on tin-plated for holding beer, soft drinks, and aerosol products. Unfortunately, some legislative regulation intimidate Crown’s business. They have to do something in order to compensate their products.…

Executive summary The assignment discusses corporate governance in reference to the Libor scandal. The Libor scandal included most of the biggest banks in the world at the lack of good corporate governance. The scandal revealed the flaws and corruption in the banking system, this has left thousands of people questioning if whether the banking system can be trusted? Introduction Discussed in this assignment in great detail below…

were to use this money, which led to the misuse of it. The government had to bail them out because to many other institutions would have went down with them. AIG abused the trust of its investors, stakeholders, and employees making it the biggest scandal ever because it had to be saved by the government or it would have caused an economic depression. The website says, “At the heart of everything we do is an unshakable commitment to honesty, fairness, and respect (AIG, 2014).” The action of the…

In the case scenario, Mr. Wu is a 55 years old accountant. He had sudden onset of left sided weakness and drooling. So he was admitted to the Accident & Emergency Department. After CT brain scan, Mr. Wu was found suffering from right middle cerebral artery ischaemic infarct. He was then transferred to the stroke unit for further management. Several health needs are identified after conducting health assessment to Mr. Wu. Left-side weakness and urinary incontinence are selected for…

Starting off the Sarbanes-Oxley was enacted in 2002, the Sarbanes-Oxley Act is designed to protect investors and the public by increasing the accuracy and reliability of corporate disclosures. It was enacted after the high-profile Enron and WorldCom financial scandals of the early 2000s. It is administered by the Securities and Exchange Commission, which publishes SOX rules and requirements…

the effort to reduce corporate power, Congress passed the Sarbanes-Oxley (SOX) Act “in 2002 to protect investors form the possibility of fraudulent accounting activities by corporations,” (Root 2015). In response to all the scandals reported involving major corporations like Enron, Tyco, and WorldCom, liability was made to corporate responsibility as investors and shareholders suffered major losses due to financial and accounting obstructions from those within the company. The Sarbanes-Oxley Act…