Accounting Scandal Essays (Examples)

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Autonomy Corporation Accounting Scandal
What fraud or other financial malfeasance took place?

Hewlett Packard on November 20, 2012 delivered a statement against Autonomy's unmentioned members of the previous management team accusing them of final impropriety. The shocking thing about the turn of events was that HP had accused the un-specified members of huge allegations and that too without any contact or notice to the Autonomy's CEO (Autonomy Accounts, 2012). However, all the allegations were denied by the Autonomy who during the past as the company of public had handled its finances according to the applied practices and regulations. These practices were also checked on by Deloitte LLC which is an independent auditor and it confirms the applicable procedures which were also commanded by the IFS used in the United Kingdom (Autonomy Accounts, 2012).

A lot of spectators were shocked by the claims made by HP regarding the allegations which make up to 5….

Accounting Scandals
$2.65 billion. That is the amount the investment Citigroup agreed, less than a year ago, to pay to investors who had bought stock and bonds in the telecommunications giant orldCom before its bankruptcy filing two years ago. If the adage that 'crime does not pay' is not always true, it is certainly valid when estimating the tremendous cost the orldCom and Enron investing and accounting scandals have cost employees, investors, shareholder, and ordinary consumers. (Morgenstern, 2004)

The Citigroup settlement was the second-largest amount ever paid to settle a securities class action. It was the largest settlement ever granted by a bank, brokerage firm or auditor to settle a fraud case brought about by investors alleging that they had been deliberately mislead to buy securities issued by an outside corporation. Citigroup denied that it violated any laws when encouraging investment in orldCom. Rather, it stated that it agreed to the arrangement….

Olympus Accounting Scandal
In economic boom that occurred in 1980s, a lot of Japanese enterprises struggled to sustain sales in international market because of the strong yen. Akin to several other businesses, Olympus offset its decreasing sales by participating in offshoots and non-core businesses, promoted by low rates of interest and easy credit access. After the Japanese bubble burst, the company sustained huge losses on its various investments, amounting to around $1.3 billion.

In an attempt to avoid revealing this loss within the enterprises' merged financial statements, Olympus traded the loss-making assets through specific modes that were never included in its books. The practice was relatively common in Japan in 1990s and in early 2000s; thus, to oblige with shifts in Japanese accounting guidelines' requirements in 2008, Olympus' senior management try to protect its tracks (oss, 2012).

In order to avoid revealing the hidden losses before the onset of new accounting guidelines,….

It is hypothesized that regular TM practice will bolster ethical decision-making and ethical reasoning, especially as those skills relate to the accounting profession. Moreover, TM should have a measurable effect on personal value systems, measured by the Rokeach Value Survey (RVS). Moral judgment will be measured by the Define Issue Test (DIT) and the Socialmoral Refection Measurement- Short Form.
If, as hypothesized, TM creates a measurable effect on personal value systems and moral judgment in the population sample of accounting students, then this research has profound implications for the profession including the following. First, the effects of TM would improve the caliber of practice and therefore improve the reputation of the accounting profession. Second, educators could incorporate ethical discourse into accounting school curriculum and/or incorporate TM practice to accomplish the same goals. It is believed that an improvement in moral and ethical judgment will have a positive impact on the….

Toshiba Accounting Scandal
PAGES 6 WORDS 1933

Toshiba’s Accounting Scandal: Business Ethics and the Media Along with Sony, the Toshiba Corporation is one of the most legendary and famous Japanese technology companies in the world. According to the “History of Innovation” section of its official corporate website, Toshiba boasts a long, proud 135-year technological history. In the past thirty years, the company has given birth to the first laptop computer for the average consumer, the first wireless laptop, and the world’s thinnest widescreen laptop (“History of Innovation,” 2017). It has also boasted groundbreaking innovations in DVDs, televisions, and other consumer products. Yet while Toshiba has been trusted for many years to produce high-quality products, it has also boasted a highly insular culture of loyalty that has fostered a breeding ground of corruption (“History of Innovation,” 2017). Toshiba was recently beset by a serious accounting scandal that tarnished the reputation of the corporate giant. In the wake of the….

Accounting is the language of business. It allows shareholders, creditors and stakeholders and management gauge the overall performance of the business enterprise. Through the results of this financial evaluation, potential investor or creditors can better assess the economic realities facing the company. This allows for society to make better informed decisions as it relates to capital distribution. Well run companies that earn high returns on capital, often garner of higher share of societies financial capital. Likewise those business or industries that don't earn a high enough return to compensate investors for the risks they are taking, do not obtain large amounts of capital. The technology industry for example, earns a high returns on capital and can therefore earn large inflows of investor capital. The airline industry however, earns abysmal rates of return and can therefore have a hard time raising capital. Accounting forms the basis of this decision making on….

Sarbanes-Oxley stipulates criminal and civil penalties for securities violations. Also, it mandates auditor independence from the interests of the firm, meaning that accountants cannot have a financial interest in the success or failure of the firm. Additionally, it mandates the certification of internal audit work by external auditors and mandates increased disclosure regarding executive compensation, insider trading and financial statements, in the interest of making more information public to investors. ("Sarbanes-Oxley Compliance," Technet 2005) Although the act is not a panacea, increased objectivity on the part of auditors and greater insistence on free and fair disclosure on the part of firms will hopefully ameliorate the some of the hiding of vital information that created the climate of secrecy within the firms of Enron and orldCom that helped give rise to the 2002 scandals.
orks Cited

Sarbanes-Oxley Compliance." (2005) Technet. Retrieved on 23 Oct 2005 at http://www.techlistings.net/xlist/tech/bizsoft/compliance/sox?id=1

Sarbanes-Oxley. (2002) Law retrieved by findlaw….

Accounting has been nothing if not a dynamic, global discipline over the last two decades. The role of the accountant has changed dramatically during that time and will continue to do so -- as will the nature of the challenges that the accounting profession faces"
Over the past twenty years, the modern business community has been faced with the challenges of globalization, the new predominance of technology in business affairs, and the creation of a service-based 'knowledge economy' versus a manufacturing-based one. The profession of accounting has had to adapt to this new environment. "Business internationalization and globalization has facilitated the transfer of capital and information across national borders, with economic power residing in holders of particular knowledge sets. Business and management location is becoming increasingly irrelevant and management and accounting work is becoming multidisciplinary" (Parker 2002).

Globalization has lead to more uniform regulations in accounting. Until recently, U.S. accountants for….

Accounting GAAP and IFRS
PAGES 8 WORDS 2554

Accounting includes recording, summarizing, and reporting of the economic activities and events of an organization. It is pertinent in business decision-making and the management and control of operations. The financial statements reported by a company include the income statement, balance sheet, statement of retained earnings and statement of cash flows. Globally, there are two sets of accounting standards, the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). In particular, the GAAP are more often than not employed in the United States whereas IFRS are more often than not employed in Europe and international expanses. IFRS are regarded as being more principles-based and U.S. GAAP as being more rules-based. The establishments responsible for setting the IFRS and GAAP are the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) respectively (Gaspar et al., 2016). The purpose of this paper is to discuss the difference between GAAP….

Professional Profile of the Defense Finance and Accounting Service (DFAS):
Chaos

What is the Defense Finance and Accounting Service?

Ensuring that the men and women who work for the United States military receive their salaries promptly is critical. The Defense Finance and Accounting Service (DFAS) serves this vital function. The DFAS was created in 1991 by the Secretary of Defense, "to standardize, consolidate, and improve accounting and financial functions throughout the Dod. The intent was to reduce the cost of the Department's finance and accounting operations while strengthening its financial management" ("Agency overview," 2016). Today, the organization pays all "military and civilian personnel, retirees and annuitants, as well as major Dod contractors and vendors" as well as is responsible for accounting and financial record-keeping for the Dod ("Agency overview," 2016). The agency was formed to consolidate different administrative functions but has been the target of a great deal of criticism because its presence….

In aaccounting research, the model used would be called analytical modeling, which consists of sstudies that use models with no specific underlying economic theory but use mathematical techniques. The mathematical formulas are applied to test and establish laws and accounting practices. Simulation, or the practice where the analysis is so complex that it requires a computer, is also an example of an inductive accounting practice research methodology.
Finally, pragmatic research utilizes pragmatic validity, which views research from a prescriptive-driven perspective. For example, solutions to problems that actually occur in the complex and high field of practice are developed in a way that, while valid for a specific situation, need to be adjusted according to the context in which they are to be applied. In the accounting area, general empirical research is a catchall that includes primarily descriptive empirical work. Another example of an accounting research methodology that consists of pragmatic….

In this case, it was a $4.9 billion bank account. However, credit would have been granted against an asset like that. Finding such an account did not exist, banks would have wanted their money back, and Parmalat would not have had it. This would be grounds to take the company into insolvency, especially if somebody at Parmalat was counting on that account to pay off its debts.
4. These fraudulent activities, as noted, would have boosted the accounts receivable at Parmalat, and could potentially have reduced the inventories as well. The effect on the balance sheet, if the inventories were not affected, would have been to boost the a/R and therefore the current assets. As a result, the quick ratio would have improved, on the basis of an inflated accounts receivable.

5. Citicorp was a victim here. There are some controls that can be done to ensure that the financial statements….

However, when a shock happens that changes that pattern, the information is no longer relevant. In periods of turmoil, only the most up-to-date information is relevant. The usefulness of the information wanes quickly as the behavior of the company becomes more erratic. After a period of erratic behavior and change, the company may be forced to make internal changes that affect the way they do business. They may make changes that affect their inventory management, sales cycle, stock levels, supply chain, distribution network or other fundamental business functions. New patterns may emerge and the old information no longer applies.
The term "relevancy" can have many different meanings depending on what is happening with the company. A new accounting regime may need to be instituted when a change takes place. Looking at the most recent historical information is one way to determine the relevancy of the accounting information. The analyst needs….


The CEO of Martha Stewart Living Omnimedia, Inc., Sharon L. Patrick, issued a press release in October: "Despite the losses in the quarter, we continue to benefit from strong consumer support for our products, which offer that unique blend of 'Martha Stewart' brand attributes - inspirational 'how-to' ideas translated into products that stand for quality, style, usefulness and affordability," Patrick reported.

During the 3rd Quarter of 2004, Stewart's company purchased "Body and Soul" magazine, and Patrick also announced that Stewart will launch a new television show; and Mark Burnett Productions will "develop and produce a primetime network television series" set to launch in the fall of 2005 (Burnett is the producer of "Survivor").

Current assets for Martha Stewart Living Omnimedia, Inc., as of Sept. 30, 2004, were $179,298. Current Liabilities for the same period, $61,815. That is a plus $117,483.

For the year ending 2003, "net cash provided by (used in) operating activities"….

This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing these services to clients whose financial statements they also prepare." (U.S. Department of Labor, ureau of Labor Statistics, 2009)
1. Public Accounting

The work entitled: "The Reality of the CPA's Role" states that modern CPAs work "behind the scenes as trusted advisors in nearly all significant business decisions. Successful accountants display the ability to think strategically and creatively and to be problem solvers and business advisors." (Douglass, 2006) Douglass states that the views of the CPA are widely varied "...whether from the viewpoint of the investing public or from the perspective of the companies that engage CPAs to audit their financial statements or perform other functions. In fact, many people not involved in the business management or accounting profession may perceive CPAs as….

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6 Pages
Case Study

Business - Law

Accounting Scandal of HP and Autonomy

Words: 2167
Length: 6 Pages
Type: Case Study

Autonomy Corporation Accounting Scandal What fraud or other financial malfeasance took place? Hewlett Packard on November 20, 2012 delivered a statement against Autonomy's unmentioned members of the previous management team accusing…

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3 Pages
Term Paper

Business

Citigroup Accounting Scandal

Words: 1097
Length: 3 Pages
Type: Term Paper

Accounting Scandals $2.65 billion. That is the amount the investment Citigroup agreed, less than a year ago, to pay to investors who had bought stock and bonds in the telecommunications…

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7 Pages
Term Paper

Accounting

Looking Into Olympus Accounting Scandal

Words: 2296
Length: 7 Pages
Type: Term Paper

Olympus Accounting Scandal In economic boom that occurred in 1980s, a lot of Japanese enterprises struggled to sustain sales in international market because of the strong yen. Akin to…

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1 Pages
Term Paper

Accounting

Slew of Accounting Scandals Including

Words: 318
Length: 1 Pages
Type: Term Paper

It is hypothesized that regular TM practice will bolster ethical decision-making and ethical reasoning, especially as those skills relate to the accounting profession. Moreover, TM should have a…

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6 Pages
Essay

Business - Ethics

Toshiba Accounting Scandal

Words: 1933
Length: 6 Pages
Type: Essay

Toshiba’s Accounting Scandal: Business Ethics and the Media Along with Sony, the Toshiba Corporation is one of the most legendary and famous Japanese technology companies in the world. According to…

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2 Pages

Business

How Accounting Scandals Impact Society

Words: 597
Length: 2 Pages
Type:

Accounting is the language of business. It allows shareholders, creditors and stakeholders and management gauge the overall performance of the business enterprise. Through the results of this financial evaluation,…

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1 Pages
Term Paper

Accounting

Accounting Scandals With the Accounting

Words: 338
Length: 1 Pages
Type: Term Paper

Sarbanes-Oxley stipulates criminal and civil penalties for securities violations. Also, it mandates auditor independence from the interests of the firm, meaning that accountants cannot have a financial interest…

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3 Pages
Essay

Accounting

Accounting Has Been Nothing if Not a

Words: 937
Length: 3 Pages
Type: Essay

Accounting has been nothing if not a dynamic, global discipline over the last two decades. The role of the accountant has changed dramatically during that time and will…

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8 Pages
Essay

Accounting / Finance

Accounting GAAP and IFRS

Words: 2554
Length: 8 Pages
Type: Essay

Accounting includes recording, summarizing, and reporting of the economic activities and events of an organization. It is pertinent in business decision-making and the management and control of operations. The…

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8 Pages
Journal Professional

Military

Accounting Systems and Accounting

Words: 2188
Length: 8 Pages
Type: Journal Professional

Professional Profile of the Defense Finance and Accounting Service (DFAS): Chaos What is the Defense Finance and Accounting Service? Ensuring that the men and women who work for the United States military…

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2 Pages
Term Paper

Accounting

Accounting Research in the Past

Words: 525
Length: 2 Pages
Type: Term Paper

In aaccounting research, the model used would be called analytical modeling, which consists of sstudies that use models with no specific underlying economic theory but use mathematical techniques.…

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2 Pages
Term Paper

Economics

Accounting - Parmalat Several Accounts

Words: 561
Length: 2 Pages
Type: Term Paper

In this case, it was a $4.9 billion bank account. However, credit would have been granted against an asset like that. Finding such an account did not exist,…

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10 Pages
Essay

Business

Accounting Profession Towards a More

Words: 3151
Length: 10 Pages
Type: Essay

However, when a shock happens that changes that pattern, the information is no longer relevant. In periods of turmoil, only the most up-to-date information is relevant. The usefulness…

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3 Pages
Term Paper

Business - Advertising

Accounting Company 1 Vertis Inc

Words: 824
Length: 3 Pages
Type: Term Paper

The CEO of Martha Stewart Living Omnimedia, Inc., Sharon L. Patrick, issued a press release in October: "Despite the losses in the quarter, we continue to benefit from strong…

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14 Pages
Term Paper

Accounting

Public Accounting Corporate Accounting and

Words: 3822
Length: 14 Pages
Type: Term Paper

This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing…

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