The ultimate goal is to protect investors. Reason Many acts of corporate corruption in the 1990s and early 2000s brought on this regulation. There were many loopholes that allowed for accounting errors without any legal incentive to correct the problem. Due to the accounting practices at companies such as Enron, Tyco, and WorldCom investors lost billions. The accounting practices created a scandal in which the companies were able to hide information from investors.
As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department. For this information to get to the finance department a lot of time would have been wasted and also for the finance department to reply to them, all this would cost them a lot of money. Advantages of Sainsbury's is that the power they have would be successful for the business as when work is being done the communication of the workers together when given commands from the manager and having to work better for the manager to impress them in order for more work to be done and at a more well-organized rate then if there was no pressure from the manager. Disadvantages would be that the workers would start to get stressed from having to complete the workload at too fast a pace for them to work at all times that they will start to work less and dislike there job and some days may not want to work as they are stressed to do work which is too much for them to cope as they are trying too hard to impress, this could lead to employees wanting to quit their job. Advantages are that when having to complete work set out by the manager to the employees it can be done efficiently so that the manager will be able to assess the employee and they could get a promotion to a higher part of their job.
The Case of Bernard Madoff Case 5 Problem Statement: Fraud Summary : This case closely encompasses how Bernie Madoff was accused of creating a scheme that destroyed $65 billion in investments. He single handedly deceived thousands of people including auditors, accountants, and regulators. His scheme deceived so many intelligent people and regulators considered him legitimate. His family, auditors and employees have been under investigation to find out who helped and benefited from Madoff's scheme. Madoff claimed he was the only one at fault however his right hand man explained that numerous businesses new about his scheme and still accepted it and openly violated the law.
Accounting Fraud Examination October 12, 2011 Introduction As we look back on the first decade of the 21st Century, we see that Corporate America and the Financial Markets were riddled with corruption and fraud. At the beginning of the decade we saw the likes of Enron and WorldCom become insolvent due to accounting frauds of epic proportions. The one case that stands out amongst all of them is the Bernard Madoff case, which is considered to be the largest fraud case of all time. “Madoff managed to lure billions of dollars away from huge charities, as well as wealthy individuals in both the United States and Europe by getting them to invest in his hedge fund. He did so by claiming extraordinary returns (generally in the low double digits).
I feel that one major reason that SOX was controversial is that it cause many companies, that were following the rules and regulations, to go out of their way and change policy and procedure and potentially costing them more money. Overall I think that the SOX act was a needed to help protect millions of investors, and to shed some light on what is actually taking place within a company financially. SOX may have not been an ideal situation for many companies but the act is well in favor for the
- Securities fraud : Madoff was arrested by the Federal Bureau of Investigation (FBI) on December 11, 2008, on a criminal charge of securities fraud. Fraud occurs when a wrongdoer deceives another person out of money, property, or something else of value. Four elements are required to find a fraud: 1- The wrongdoer made a false representation of material fact. Madoff used Ponzi Schemes which is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit. The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors.
21819 Securities and Action No. CV 11-0092-PHX-DGC, where charges were formally brought forth against the senior management of the corporation. Prior to the indictment, the SEC formally charged NutraCea, two accounting personnel, and three executives for the unlawful engaging of fraudulent accounting in order to inflate the entities sales revenue. The corporations overstatement of sales revenue for both the 2nd and 3rd quarters of the 2007 fiscal year was done as a result of the corporation engaging in unethical activities of revenue recognition and by recording falsified sales. Those that were employed by NutraCea and were found guilty of engaging in improper activities and were charged by the SEC were former CEO Bradley David Edson, Secretary Todd C. Crow, Senior VP Margie Adelman, Director of Financial Services Scott Wilkinson and Controller Joanne D. Kline.
Analytical Essay Overall wellbeing, an extravagant lifestyle, and wealth all come to mind when I ponder the good life but what does the good life actually cost? At first glance, this seems like a loaded question that requires multiple dissertations in order to answer. I even contemplated whether or not the good life had a cost at all. Breaking the good life into separate topics relieves much of the stress when it comes to giving an answer. In terms of consumerism, the good life is damaging to the environment, places too much emphasis on money, and it dwindles the importance of non-market values.
Article Analysis Over the past several years, unethical business practices, specifically in the accounting and financial categories, have made the news headlines frequently. Corporate America has been hit by greed and an overwhelming desire to make money at any cost, including sacrificing strong ethics and a proper moral code. Unethical situations include treatment of employees and stakeholders, manipulating financial reporting, and selling known unsafe products. Manipulating financial reports most often begins at the top management within a company (Clement, 2006) in an effort to boost salaries for those senior executives. Hiding accurate earnings, reporting inventory sold when it was not, and recording erroneous cash flows are just some of the ways that corporations have used to side step proper ethics.
Part of the necessary training needed for all criminal justice professional is ethics training. Ethical violations are unfortunately found in various professions, not only law enforcement. Every time someone turns on the news there is a scandalous report of a corporations, politicians, sports figures, or entertainers who has committed one or many unethical acts. These unethical behaviors are nothing new. For example, the White House has seen its share of controversies, from Watergate to Bill Clinton and Monica Lewinski.