We will summarize the efforts made by the US authorities in rectifying the discrepancies in the regulations of business practices in corporate America. The investors and employees were left high and dry to face the loss of their investment, pension and retirement amounts.
Finally we will take a closer look at the involvement of the board of directors of public companies to comply with corporate governance procedures after the debacle of Enron.
Corporate Tax Return - Signing of corporate tax return by chief executives Corporate Fraud and Accountability - Tampering with records, persons serving as officers or directors, increased criminal penalties, etc. It could happen to us, too. We see here that most of these issues are under the light of the Enron scandal.
Corporate and Criminal Fraud Accountability - Criminal penalties, protection of employees, security fraud, etc. The major beneficiaries have been American consumers.
Xerox accounting scandal essay this debacle, the US authorities have analyzed the situation and have attempted at undoing the wrong in a variety of ways. Corporate Responsibility - Fair funding for investors, audit committees, financial reports, conduction of audits, etc. They hid these losses under their many subsidiaries, often in foreign countries.
Securities Analyst - The creditability of analysts came under question following the collapse of Enron stock in November as even the Wall Street analysts failed to predict the Enron disaster. Enhanced Financial Disclosures - Periodic reporting, transactions involving management and principal stockholders, code of ethics, exemptions, etc.
If it is contained to a small fall in the dollar, it may not be too bad. This act was a major move by the authorities and its enforcement and execution is causing companies a great deal of grief; however SEC has been known to give extensions for the deadlines. Billions of dollars were lost and thousands of jobs were mislaid.
For all financial statements that were to be filed deadlines were provided to comply with the provisions highlighted in the act. The SEC accused Xerox of having "misled and betrayed investors" via a series of accounting tricks designed to manipulate its earnings and enrich top executives.
For this purpose all companies to be listed require an internal audit function and this is meant to increase governance of listed companies. Enron - What Went Wrong?
The move appeared to work as the FTSE index rose Auditor Independence - Conflict of interest, audit partner rotation, commission authority, etc. Corporate Governance - The board of directors is meant to protect the interest of the shareholders.
White Collar Crime Penalty - Criminal fraud offenses, corporate responsibility, criminal penalties, etc. Its accounting scandal erupted last year and its auditor, KPMG, was fired after working for the firm for 30 years. Other accounting scandals like WorldCom and Xerox were bought to light further reducing public confidence in corporate investment.
LLP Formation - The ease with which general partnerships can be converted to limited liability partnerships in the US by filing the requisite paperwork with the state department can lead to additional Enron-like disasters.
The scandal at Xerox, though, is doubly shocking because its problems seemed to have been resolved by an investigation in April by the securities and exchange commission, the chief US financial watchdog.
Auditing - There may have been a possibility that the auditors were mislead into preparing the wrong financials for the company.Accounting Fraud at Xerox Corporation (This case is developed for class discussion and the purpose is not to depict effective or ineffective management practices.
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Only at. Ethics and Corporate Responsibility: Accounting Fraud. Print Reference this. Disclaimer: The highly visible accounting scandal in Xerox Corp showed us one significant matter; the corporate governance and internal controls is failed in the corporations.
Accounting Essay Writing Service Free Essays More Accounting Essays. Corporate America suffered a fresh accounting scandal yesterday as Xerox, the photocopying and printing giant, admitted it had overstated its revenues during the past five years by almost $2bn (£.
Worldcom Accounting Scandal - It has been noticed that during the accounting scandal of WorldCom, journal entries in the amount of $ million and $ million, respectively, were made by two General Accounting employees – Dan Renfroe and Angela Walter—without detailed support.
Xerox’s Accounting Scandal Xerox Corporation is a multinational American document management corporation which sells and produces a wide variety of color and black-and-white printers, multifunction systems, photo copiers, scanners, fax, digital production printing presses, and related consulting services and supplies.Download