Arthur Andersen Failure to Report Accurately Essay

Enron Corporation has been accused of cooking the books and overstating company profits in its financial reports. In addition, Enron’s trading business adopted mark-to-market accounting, which meant that once a long-term contract was signed, income was estimated as the present value of net future cash flows, even though in some cases there were serious questions about the viability of these contracts and their associated costs. Author Andersen provided both consulting and auditing services which created an inherent conflict of interest. On one hand, Andersen was auditing an Enron financial recording system and strategy based for the most part on the advice of its own consultants. Evidence eventually surfaced that some internal†¦show more content†¦In addition, when news of Securities and Exchange Commission (SEC) investigations of Enron were made public, Andersen attempted to cover up any negligence in its audit by shredding several tons of supporting documents and deleting nearly 30,000 e-mails and computer files. James Bodurtha, Jr., argued that leading up to the downfall of Enron, the primary motivations for Enrons accounting and financial transactions seem to have been to keep reported income and reported cash flow up, asset values inflated, and liabilities off the books. (Bodurtha, James N., Jr. (Article, Spring 2003) Arthur Andersen was accused of applying reckless standards in their audits because of a conflict of interest over the significant consulting fees generated by Enron. The auditors methods of reviewing the financial transactions were questioned as either being completed solely based on receiving its annual fees or simply a lack of expertise in properly reviewing Enrons questionable accounting practices. The accountants looked for new ways to save the company money, including capitalizing on loopholes found in Generally Accepted Accounting Principles (GAAP), the accounting industrys standards. An Enron accountant revealed they attempted to aggressively use the GAAP document to their advantage and added that the large number of rules had created the opportunity to manipulate the weaknesses of the system, whichShow MoreRelatedEnron Corporation : The Enron Scandal Essay1172 Words   |  5 Pagescompany . However, in some cases auditors can fail to recognize – or intentionally ignore – misleading data within a company’s financial statements, leading to negative outcomes for lenders and investors. This report will discuss the Enron scandal in which the auditing firm Arthur Andersen LLP turned a blind eye to the fraudulent actions of Enron Corporation, leading to the downfall of both companies and great harm to thousands of stakeholders. Enron Corporation Background Enron Corporation was anRead MoreThe Sarbanes Oxley ( Sox ) Essay2099 Words   |  9 Pagesthe largest audit fraud alongside Arthur Andersen and filed for one of the largest bankruptcies in history in 2001 after producing false numbers and committing fraud for years (â€Å"Enron’s Questionable Transactions† page 93). Enron failed to run an ethical business in multiple aspects. The executives of the company abused their powers by having board members not properly oversee its employees. Enron committed accounting malpractice by producing false financial reports to hide the debt from failed projectsRead MoreImportance of Generally Accepted Auditing Standards (GAAS)4938 Words   |  20 Pagesprovided to be able to render a report of the financial statements audited stating that it is free from any misstatement. GAAS are divided into three categories such as the general standards, the standards of fieldwork and standards of reporting. Auditors can render reports of the financial statements audited in four ways. The report render can either be qualified opinion, unqualified opinion, adverse opinion and disclaimer of opinion. Auditors who considered the report to be free from any materialRead MoreCorporate Governance and Auditors14709 Words   |  59 Pagesrun the company was given a loan of U.S$366 million. Arthur Andersen was the auditor at that time. ï‚ § HIH insurance Ltd –The Company collapsed in March 2001, creating a loss of AUS$5.3 billion. Arthur Andersen was the auditor of the company at that time. ï‚ § One-Tel-was an Australian mobile telecommunications company. The company collapsed with AUS$2.4billion in debts and losses. ï‚ § Arthur Andersen. ï‚ § Tyco In Zimbabwe corporate failures brought the financial sector into crises in 2003 to 2004Read MorePharmaCare Analysis Essay3093 Words   |  13 Pagesproducts or services must be factual and backed up with proof (Scientific Evidence). Violators could be penalize by a cease and desist order which makes the company stop running the illegal ad or deceptive practice. The company would in the future report to the FTC staff regarding all future ads and pay a fine of $16,000.00 a day for all future violations. There are other penalties like civil suits and corrective advertising, costing the violator thousands or millions of dollars. Corrective advertisingRead MoreLge 500 Week 10 Discussion 12 Essay2300 Words   |  10 Pagesattention to public trust. The public auditing companies were interested in the clients instead being watchdogs for the publics over the publicly traded companies. Congress created the Public Company Accounting Oversight Board (PCAOB) to address the failure of account ing industry’s self-regulations. Before PCAOB, accounting firms used to audit each other; however, with SOX, the PCAOB is responsible auditing the accounting firms. Creating the PCAOB was the most important since congress wanted to makeRead MoreSarbanes Oxley Act Of 20021635 Words   |  7 Pagesvirtual governance reforms and corporate disclosure in the United States history. This act made it possible to quantity the responsibilities of company’s management. Pursuing personal interests is nature calling and nobody can predict the future accurately, which presents the difficulties to control the market participants’ behaviour. While the agency theory assume that all agents’ greed could be monitored by some methods such as contracting and performance measures, which were ignored by Enron intentionallyRead MoreCase Study Enron Scandal5642 Words   |  23 Pagesflow by showing that funds were flowing through its books when it sold assets. Although these practices produced a very favorable financial picture, outside observers believed they constitutes fraudulent financial reporting because they did not accurately represent the company‘s true financial condition. Most of the SPEs were entities in name only, and Enron funded them with its own stock and maintained control over them. When one of these partnerships was unable to meet its obligations, Enron coveredRead MoreSarbanes-Oxley Research Paper2807 Words   |  12 PagesTexas. The company was started in 1985 when Houston Natural Gas Omaha-based InterNorth merged together (Thomas, Rise and Fall of Enron). Today, Enron Corporation is most widely known for their 2001 accounting scandal, which led to the biggest audit failure and largest bankruptcy in American history. After Mr. Jeffrey Skilling, Enron’s President, was hired, he began to build up a staff of top executives that were able to conceal billions of dollars of debt the company had incurred from failed projectsRead MorePossible Exam 310042 Words   |  41 Pagesrestrictions and regulations on the investment banking industry starting in 1999. FALSE 3. For the most part, the credit ratings granted to mortgage-backed securities did not accurately reflect the true risk of the securities. TRUE 4. In hindsight, most observers agree that Enron’s problems were caused by a failure of the board of directors to exercise adequate oversight. TRUE 5. Although The Board of Directors is responsible for approving the hiring of auditors, they are not responsible

Political Ideologies On Current Day Topics That Are...

Growing up, I was raised in a white, conservative, upper-middle class, Christian home. At a young age I listened and asked questions to what my parents and family members were discussing when the news came on, normally politics. As I got older and started thinking more for myself I did research on what actually I was blindly agreeing with just because that’s what my parents believe. I came to the conclusion that my ideology was similar to theirs. It wasn’t until about sophomore year in high school that I started questioning every topic that came up in politics or society. Slowly my heavy conservative feeling became less. Today I still declare myself as a conservative, but not extreme and do side with some liberal views. When getting ready for this paper I came across the article â€Å"Conservative vs. Liberal Beliefs† from the Student News Daily. In this paper I will discuss my political ideologies on current day topics that are disputed between politicians and m embers of society. To start off I will start with a sensitive subject, abortion. From my moral feeling and religious background I would say no abortion because it’s murder; I believe life starts at conception. This being said I think it should be legal, to a degree. If a woman is raped or has been part of incest, I believe that it should be okay for that woman to have an abortion. Another circumstance that I believe should apply is if that baby the woman is carrying is possibly fatal to the pregnant woman. I do believeShow MoreRelatedRole of Media in Pakistan5662 Words   |  23 Pageswhile 30 cases were recorded in NWFP, 23 in Baluchistan, 16 in FATA, a dozen in AJK and three in Northern Areas. How media suffered in Pakistan history What was shocking about the coup was that it was not ostensibly against the government of the day (Musharrafs own) but against the judiciary and the media. 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The desired result is a change of the attitude toward the subject in the target audience to further a political agenda. Propaganda can be used as a form of political warfare. While the term propaganda has acquired a strongly negative connotation by association with its most manipulative and jingoistic examples, propaganda in its original sense is neutral, and may also be construedRead MorePublic Health Paper12265 Words   |  50 Pagesinfectious disease, locating public health, the enlightenment, the Sanitarians, national provision of services, the inception of the National Health Service, ‘crisis in health’, The New Right, The Third Way, new public health. Public health, the new ideology may be taken to mean the promotion of healthy lifestyles linked to behaviour and individual responsibility supported by government action; whereas traditionally the description tended to relate more to sanitary reform and ‘healthy conditions’. 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Organizational Resources and Capabilities Tools

Question: Discuss about the Organizational Resources and Capabilities Tools. Answer: Introduction: An analytical approach is a form of corporate strategy, also referred to as rational approach which depends on the development of a chronological system of steps or procedures. In other words, this stratagem involves a systematic linear thinking and ought to be combined with an emergent approach to be effective. An emergent strategy, on the other hand, is a type of organizational strategy which relies primarily on instinctual thinking, leadership, and erudition. It is seen as a fragment of management and again should be combined with an analytical approach for it to be successful. This paper aims at analyzing the advantages and disadvantages of planned or analytical and emergent approaches to strategy. To bring this concept out successfully, I will embed my arguments in Makkah Construction Development Company, one of the best performing corporations in the Middle East headquartered in Saudi Arabia. Analytical/planned approach As Macredie, (2008) points out an analytical strategy involves a clearly enunciated vision and concomitant plans with a presence of proper control mechanisms to execute them in a stable foreseeable or manageable environment. From this argument, it is evident that there are three characteristics of an analytical strategy. A typical company often has a precise mission which is articulated in an unambiguous manner to keep all stakeholders on the same page. Since its inception in June 1989, Makkah Construction Development Company has had the purpose of operating predominantly within the Real Estate Sector concentrating entirely on Diversified Real Estate Activities and emerge the market-leader in this particular sector. Moreover, there exists a mutual organizational intention among various stakeholders at every level. All employees in Makkah Construction and Development (4100) are committed to achieving the companys set goals and objectives. These shared-intentions as Heisig, (2002) sup ports, should be accomplished regardless of any environmental force. Various team players in our firm of interest place quality above every other aspect, sometimes at the expense of earnings. In analytical approach, managers execute a strategy, state it precisely and endeavor for its viability in the competitive environment without considering any external factor compelling them to alter their plan. In other words, it is non-responsive to external influencers such as government policies, changes in customer choice or emergence of new technology. However, it is clear that this phenomenon cannot be applicable in the modern business environment considering various factors such as competition, national financial crises, and other adverse economic conditions. In short, organizations usually operate in an environmental setting with various influencers which they have no control over, and as such, purely analytical approach is not logical (Kevrekidis, Frantzeskakis, Carretero-Gonza?lez, 2 008). Vision can deliver a holistic view of organizations path, with opportunity for adaptation that is the final vision can come up in the course of the journey itself (Kelly Booth, 2004). In an emergent strategy, stakeholders' feedback and comments are welcome on firm's previous undertakings, threats, and opportunities and hence the organization's vision is refurbished and developed again. Besides, in emergent approach, flexibility to an adaptation of external business influencers and distortion of threats into opportunities are fundamental. We can, therefore, take this as a bottom-up strategy, an essential constituent of the analytical approach since it ensures that information from all aspects of the company is incorporated in the decision-making process (International Symposium on Environmentally Conscious Design and Inverse Manufacturing, Umeda, 2012). In Makkah Construction Development Company, for instance, information in various departments flows freely, and managers make decis ions by putting into consideration all inputs. In analytical approach, formal plans and precise intentions are pre-determined before starting the journey, and the business strives to achieve its purpose without considering the impact of external environmental factors. On the other hand, in emergent strategy, businesses are adaptable to emerging threats and opportunities, and it is quite responsive to external inputs. For a planned approach to be successful, the business must operate in a perfectly predictable environment where it has full control over. Organizations which advocate for an emergent approach anticipates for significant changes in the future of the business, and as such, they are flexible enough to adapt to new operation mechanisms depending on the prevailing business environment. The rational strategy assumes a controllable and predictable environment which as (Swayne, Duncan, Ginter, 2008)say is almost impossible to have in the modern high-tech and ever-changing business world. In emergent approach, business activ ities need to be conducted consistently over time with a significant view of what is transpiring in the external environment of the firm. Implemented strategies should be open, responsive, and flexible to adjustments in the course of the business life. The rational approach, on the other hand, is non-responsive and strategies advocated for tend to be rigid and only focusing on what the organization has control over (Ginter, Duncan, Swayne, 2013). Practical Experience and These Approaches I was working as a BGDM (Business Growth and Development Manager) in Alinma Bank Stock Company when the regional government instructed them to execute rigorous preventive measures to alleviate the impact of the 2010 credit-crisis exposure. The company's vision was at a very high echelon, and the business opportunities and threats seemed unknown and as such as we progressed we considered input from our environments, for instance, Bank's stakeholders and government regulatory bodies. We later used their feedback and input to formulate our vision in the course of the journey. Had we opted for an analytical approach, it would have failed, because we did not have any clue about the external business factors. Besides, the course of the ground situation was unpredictable, and as well we had no hint on the best measures to implement and circumvent the impact of credit crisis in our business. Both external (cyber-attack and government monitoring) and internal factors (readiness of the bank st aff and anxiety of possible job loss) challenged us. The staff members advocated for a planned approach where decision-making process could not require any external input and the business could thrive without considering the impact of external influencers. We first motivated them and promised them any strategy that the management will make will not affect their privileges neither will it influence their occupation rights. After that, we gathered their feedback, arranged workshops to brainstorm on the jeopardizing issue of credit-crisis, and we unanimously turned this threat into an opportunity, and our Programme was recommended by the already motivated staff. A pragmatic strategy requires a company to combine both analytical approach and emergent approach at the same time. Leaders at this point are able to establish a vision to direct their subjects and initiate a path to accomplish the business goals. It is of paramount importance for the implemented strategy to be highly sensitive and responsive to the external influencers in the course of the journey. We can argue that both stratagems have some concomitant drawbacks but their significance in the journey to succeed cannot be underestimated. However, it depends on the situation at hand and the business domain too (Siim, Mokre, 2013). In a manufacturing company such as aircraft and automobiles industries or even in insurance or banking domain, planned approach is applicable since these sectors function in a Bureaucratic structure where Standard Operating Processes are adhered consistently with a diminutive scope of invention. Once an analytical approach is executed, people follow unquestionably the laid down mandates and rigorous supervision implemented to accomplish the pre-determined objectives, and they are not hindered by any external factor (Roberts, 2015). Emergent strategy is being enhanced as time elapses is in association with and accommodating the varying authenticity. Pavarini, Autumn School Correlated Electrons. (2013)maintain that it is a front-line tactic as it tends to resolve definite problems. In this contemporary unpredictable, swiftly-evolving, boundary-less business environment, it is essential for organizations to be more responsive to attain the competitive-edge over contestants in the industry. This aspect makes emergent strategy more practical and advantageous in a slow-growth market as well. References Ginter, P. M., Duncan, W. J., Swayne, L. E. (2013).Strategic management of health care organizations. San Francisco, CA: Jossey-Bass, Wiley. Heisig, G. (2002).Planning stability in material requirements planning systems. Berlin: Springer. International Symposium on Environmentally Conscious Design and Inverse Manufacturing, Umeda, Y. (2012).Design for innovative value towards a sustainable society: Proceedings of EcoDesign 2011: 7th International Symposium on Environmentally Conscious Design and Inverse Manufacturing. Dordrecht: Springer. Kelly, L., Booth, C. (2004).Dictionary of strategy: Strategic management A-Z. Thousand Oaks, Calif: Sage Publications. Kevrekidis, P. G., Frantzeskakis, D. J., Carretero-Gonza?lez, R. (2008).Emergent nonlinear phenomena in Bose-Einstein condensates: Theory and experiment. Berlin: Springer. Macredie, R. (2008).Modelling for added value. London: Springer. Pavarini, E., Autumn School Correlated Electrons. (2013).Emergent phenomena in correlated matter: Autumn School organized by the Forschungszentrum Ju?lich and the German Research School for Simulation Sciences at Forschungszentrum Ju?lich 23-27 September 2013 ; lecture notes of the Autumn School Correlated Electrons 2013. Ju?lich: Forschungszentrum Ju?lich, Inst. for Advanced Simulation. Roberts, A. J. (2015).Model emergent dynamics in complex systems. Siim, B., Mokre, M. (2013).Negotiating gender and diversity in an emergent European public sphere. Swayne, L. E., Duncan, W. J., Ginter, P. M. (2008).Strategic management of health care organizations. San Francisco, CA: Jossey-Bass.

Of Mice and Men by John Steinbeck free essay sample

An examination of the relationship between George and Lennie in John Steinbecks Of Mice and Men. This paper gives a character sketch of the two main characters George Milton and Lennie Small, discusses their dependencies on each other and determines how their characters affect the plot and flow of the story. One important point in establishing the importance of George and Lennies character in the story and their dependence on each other is through their character sketches. George Milton was illustrated in the novel as small and quick, dark of face, with restless eyes and sharp strong features while Lennie is described to physically big in form and is said to be as big as a bull (Planet Papers 2002). George may be small in physical stature, he compensates for his deficiency in built by possessing the mental ability to think rationally and logically, which Lennie obviously does not have, since he was a mentally-challenged individual. We will write a custom essay sample on Of Mice and Men by John Steinbeck or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Lennie, although unable to comprehend complex ideas and thoughts, has a special ability to care and love for those people who value him for whatever he is, and George is evidently the only person who cared for him despite his mental deficiency and shortcomings in character.