Hans Christian Andersen

The documentary “Enron: The Smartest Guys in the Room” deals with “one of the most America's largest corporate bankruptcy”, as it reports the documentary itself. In fact, few years before the bankrupt, Enron was the 7th largest corporation in the USA that took 16 years to go from 10 billion assets to approximately 65 billion, but in only 24 days it went bankrupt. The movie describes and analyses how the company grew and then collapsed quickly and surrounded by a gigantic scandal that can be seen…

1 INTRODUCTION John Morrison(JM) is a cosmetics company that is established in the UNK since 1984. Couple years ago it was bought by Estelle Lorean (EL). Currently, JM is running through a big change in the company. New management team is being introduced. 1.1 IMMEDIATE CAUSE The new management team of John Morrison is executing changes throughout the whole company; stressing out on the introduction of an integrated system that supports manufacturing activities, logistics, retail and etc.…

Sumitomo Copper Scandal (1995) Impacts on the Sumitomo Corporation The Sumitomo Copper estimated that the copper scandal, the financial scandal, gave rise to losses of $1.8 billion in June 1995. According to the company, the case would not affect their activeness and they would swallow the entire loss in the current fiscal year, which was about nine months after it took place. In order to cover the $1.8 billion losses, they would set aside a fund from the original executive bonuses and canceled…

The trade turnover for the Newport creamery in 1918 was reported at a substantial sum of £34,765. At the Nenagh Quarter Session of the County Court in October, in efforts to recoup the endured losses a claim was lodged by the society for £20,000. The magistrate awarded £12,339 in damages, which also included interest at six percent for the duration of one and a half years on the value of the stock destroyed. Furthermore, an additional fifteen percent was awarded for the increase in the price of…

Richard Dickey Scruggs is a famed Mississippi tort lawyer, who was born on May 17, 1946, grew up in Pascagoula, Mississippi. He was raised by his mother, because his father left the family when Scruggs was five years old. His mother worked as a legal secretary at the Ingalls shipyard. Dickie is known for tobacco and asbestos case and amassed more than 1 billion in judgments against various companies. According Joseph B. Treaster, Scruggs became one of the richest America lawyers, by forcing…

During the time period of 1990 to 2000 financial statement fraud was pretty common. Various firms were engaged in financial fraud without thinking that the investors, and other stakeholders rely on those financial statements and the opinion of the auditor on those financial statements. The Sarbanes-Oxley Act was created because of the multiple accounting scandals of WorldCom & Enron in July 30, 2002. Because of that the investors lose billions of dollars, this negatively impacted financial stock…

Enron began as a small company that went global due to their energy trades. Enron didn’t start off bad at first and didn’t think they would become the biggest scandal of the money market nation. Enron was a growing company, over time it began to fall. It was a risky business due to poor money handling and decision making. Enron executives got greedy, the more the company was falling, they found anyway to line their pockets versus help the company. They used temporary accounting practice…

White-collar crime, according to Merriam-Webster, refers to, “a crime that typically involves stealing money from a company and that is done by the people who have important positions in the company”. In modern society, white-collar crime may not be as obvious as violent crime, but its consequences leave major impacts on the world, particularly financially. Beginning in 2002, Wells Fargo began transforming into one of the largest criminal enterprises in history. Over the past 15 years, this…

This was committed through the support of the auditors, Arthur Andersen who allowed Enron to falsify their financial statements as they hid their debts and deceived the stockholders to believe that the company was making rosy profits, however in reality was hiding their debts through various mechanisms. This was possible…

failures was a company known as Enron. Due to their involvement with Enron, the Enron debacle is sometimes referred to as the Enron/ Arthur Andersen scandal. The inclusion of Arthur Andersen in the Enron scandal was due in part to the fact that Andersen handled the accounting for Enron for approximately sixteen years. As a result, the government accused Andersen of overlooking large amounts of money which were not being accounted for in Enron’s books (HG, 2016). The Enron scandal was quickly…