Accounting – Fraud case Satyam Systems, a global IT company based in India, has just been added to a notorious list of companies involved in fraudulent financial activities, one that includes such names as Enron, WorldCom etc. The Satyam Computer Services scandal was publicly announced on 7 January 2009, when Chairman Ramalinga Raju confessed that Satyam's accounts had been falsified. The preliminary investigations by Registrar of Companies and confession by Mr. Raju revealed the balance sheet of Satyam for the year 2008 contained `cash and bank balances’ of Rs 5040 crore (US $ 1.12 billion) as against the Rs 5361 crore (US$ 1.12 billion) reflected in the books, an accrued interest of Rs 376 crore (US$ 83.85 million) which was described by Raju as `non existent’ , an understated liability of Rs. 1,230 crore (US$ 274.29 million) on account of funds was arranged by himself and an overstated debtors' position of Rs. 490 crore (US$ 109.27 million) as against Rs.
“Conspiracy of fools” book report 1. Discuss how the top leadership, specifically Ken Lay, Jeff Skilling, and Andy Fastow, contributed to the collapse of Enron. The executive leadership was the main cause for Enron’s collapse. Their dishonesty, greedy and selfishness made them do things that changed Corporate America forever. Kay Lay was the CEO for many years.
Ethicality of Accounting Activities The WorldCom case is an example of unethical behavior performed by a company by abusing accounting activities to reflect misleading financial information. In this case the main cause of this unethical behavior is greed and neglect by the executives that allowed and encouraged this behavior. On the other hand, WorldCom employee Cynthia Cooper is a prime example of ethical behavior that took place to uncover the wrong doing of individuals. Upon reading an article of a former financial analyst, Cynthia Copper’s mind was intrigued, an audit was conducted on capital spending. In the WorldCom and Cynthia Cooper case unethical behavior was evident in multiple departments and involved top key players that tried to cover up the fraud.
was cited in four different categories after a two month investigation after a complaint was made by an employee. The company was issued fines totaling up to $101,500. One of the biggest offenses made during this investigations was negligence toward the ammonia that was being used in the refrigerating system. The ammonia can cause lung issues, as well as caustic burns, this can be avoided by changing the pressure safety valves but those hadn't been changed in some time. All of the violations resulted in fines as stated above added to $101,500 however no imprisonment was necessary.
The Banks, the local authority and even the mobile phone companies have all adopted the same bureaucratic stance and use the same tactics to bully us into submission on a daily basis. What is even more infuriating is that they take our money, use it, in ways which we do not agree with and then use more of our money to bully us into accepting their decisions, hiding behind faceless call centres which are staffed by unknowledgeable people who seem devoid of any sort of common sense of ability to make a decision and provide a buffer for the clowns who make mistake in these large institutions. And give us all a nervous breakdown in the process by the injustice of their actions. Something is seriously wrong here.
It had an impact on practice of investigate journalist. Woodward and Bernstein wrote the two best selling books from the scandal. Watergate exposed lies, crimes, and corruption. The investigation established that no president is above the law. The public believes government is corrupt, no trustworthy, and ruled by money and personal
Attorney General Elliot Richardson appointed a special prosecutor, Archibald Cox, to investigate the entire affair; Cox and his staff began to uncover widespread evidence of political espionage by the Nixon reelection committee, illegal wiretapping of citizens by the administration, and corporate contributions to the Republican party in return for political favors (Columbia, 6th Edition). In July 1973, it was revealed that presidential conversations in the White House had been tape-recorded since 1971; Cox sued Nixon to obtain the tapes, and Nixon responded by ordering Richardson to fire him (Columbia, 6th Edition). Richardson resigned instead, and his assistant, William Ruckelshaus, also refused and was himself fired. Solicitor General Robert Bork finally fired Cox in what became known as the Saturday Night Massacre (Columbia, 6th Edition). In July 1974, the U.S. Supreme Court ruled unanimously that such recordings were not privileged and Nixon announced his resignation knowing he would face impeachment if he did not.
Throughout the article, the author says “The shoplifter creates a third choice of her own: she takes the products she has been conditioned to desire without paying for them… Shoplifting is the most effective protest against all … modern corporations” (Ex-workers Pg. 2). The purpose of this article and its use of logos is to inform the reader of the how the big corporations are cheating them out of their money and how they can “stick it” to them. Ethos, pathos, and logos are all rhetorical strategies that are used to inform and convince the reader of the continuing problem of big corporations cheating people out of their hard earned money. The logic and the papers emotional pull all contribute to the credibility of the author and what she has to say.
The purpose of the SOX Act in response to the fraudulent and misleading activities of large corporations such as Enron, Health South, Xerox, Global Crossing, and almost one thousand publicly traded companies. Fraud is defined as “a dishonest act by an employee that results in personal benefit to the employee at a cost to the employer” (Kimmel, Weygandt, & Kieso, 2011). The afore mentioned companies and many others committed fraud when they willingly published false and/or deceptive financial statements making their companies look like they were making huge profits, therefore causing their stock prices to soar and enticing the public to by more and more shares of their companies. Unfortunately, when the truth came out, the fraudulent actions of a few resulted in the loss of almost $5 trillion of stock market value and an undetermined amount for stockholders. Because of this fraudulent action, Congress had no choice but to intervene and pass legislation that would curtail this illegal
In most people’s minds a simple apology letter from a business is template on a computer in which your name and problem will be inserted into the blanks. We expect them to be short, to the point and most definitely mass produced. George Saunders turns this system completely upside down, which brings laughter out of the reader. First of all the apology letter is written by an employee of the business during his lunch break- this never happens, a business man does not take his own personal time to write an apology letter to a customer. Also this apology letter was very personal, another thing we do not expect to come out of an apology letter.