Nobody downloaded yet

Arthur Anderson: Questionable Accounting Practices - Term Paper Example

Comments (0) Cite this document
Summary
As one of the most popular and largest accounting organizations in the US, Arthur Andersen had become synonymous with integrity, trust and high ethical standards. Nevertheless, after the founder of Arthur Andersen’s death, the firm began to change its corporate culture and…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Arthur Anderson: Questionable Accounting Practices
Read TextPreview

Extract of sample "Arthur Anderson: Questionable Accounting Practices"

Download file to see previous pages of ethical and professional misconduct as is the case with Arthur Andersen paves way to conflicts of interest and serious consequences such as lawsuits. This is well exemplified by Arthur Andersen’s case, as shall be seen in the ensuing discourse.
There are accounting requirements and practices that organizations are expected to legally comply with, and these requirements are divided into five categories. These requirements are: the improvement of internal controls; the reinforcement of supervision against financial irregularities; the strengthening of financial disclosures; the strengthening of the independence of auditors; and the increment of penalties on legal and ethical misconduct. Two of these five categories related to the Arthur Andersen case, specifically: the extension of incentives as a way of encouraging organizational compliance standards and programs; and protection of consumers.
Nevertheless, all these requirements were intended for ensuring that people were not being exploited as a result of an organization’s business practices and were very significant to the Arthur Anderson case. The same are also intended for guaranteeing high financial and ethical standards during financial practices.
According to Carnegie (2011) and Thomas and Mark (2011), the legal and ethical issues surrounding Arthur Andersen’s auditing and accounting practice were characterized with accounting practices. These malpractices were mainly informed by conflicts of interest and the absence of independence of auditors when it came to auditing clients’ financial transactions and statements. These conflicts of interest always came into play whenever an individual was to choose between advancing his personal interests and group or organizational interests. The concept of independence was to uphold integrity and objectivity during the auditing process and its absence also readily locked out objectivity and integrity.
In respect to the immediately foregoing, one can ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Arthur Anderson: Questionable Accounting Practices Term Paper”, n.d.)
Arthur Anderson: Questionable Accounting Practices Term Paper. Retrieved from https://studentshare.org/human-resources/1652329-arthur-anderson-questionable-accounting-practices
(Arthur Anderson: Questionable Accounting Practices Term Paper)
Arthur Anderson: Questionable Accounting Practices Term Paper. https://studentshare.org/human-resources/1652329-arthur-anderson-questionable-accounting-practices.
“Arthur Anderson: Questionable Accounting Practices Term Paper”, n.d. https://studentshare.org/human-resources/1652329-arthur-anderson-questionable-accounting-practices.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Arthur Anderson: Questionable Accounting Practices

Questionable Accounting Leads to The Collapse

...? Case Study Analysis: Enron: Questionable Accounting Leads to The Collapse [N a m e] INTRODUCTION: As the world enters into the twentieth first century, many experts think that a new era of business world has dawned in which companies not only have to create targets for their product and services but also need to adopt entirely new concept in their mission, purpose, vision, implementation and conduct, through the implementation and practice of Ethics on the organizational scale. They need to address the societal thoughts while developing strategic plans. But this implementation of new ideas is not easy as it is not just a single new constraint, in fact a whole lot of new constraints,...
9 Pages(2250 words)Essay

The Enron Scandal: The Failure of Arthur Anderson and Its Impact on the Accounting Policy

...?The Enron Scandal: The Failure of Arthur Anderson and Its Impact on the Accounting Policy The project is related to the misrepresentation of financial statements of Enron by Arthur Andersen. The main objective of the project is to determine the various reasons which are responsible for the collapse of Arthur Andersen. Moreover, the project will also ascertain the impacts which are posed in the business environment after the collapse of Arthur Andersen in the global context. There are various reasons or factors which are recognised to be accountable for the closure of the auditing firm. The reasons are related to...
26 Pages(6500 words)Dissertation

Arthur Anderson: Questionable Accounting Practices

...? Questionable Accounting Practices Questionable Accounting Practices The laws promoting equity and safety in the work place passes in the 1960s and 1970s protects all the employees from discrimination in terms of age, disability and any other minority specification and created an equal employment opportunity commisiion that promotes affirmative action programs in business. As discrimination against pay is guarded by this act, Andersen should have thought about the remunerations that were a source of employee conflict when such pay was based on the clients rought in as opposed to the quality of work done, (Michael 2006). The laws that are...
5 Pages(1250 words)Research Paper

Arthur Anderson' Management

...Running Head Planning Function of Management within Arthur Anderson Planning Function of Management within Arthur Anderson Planning Function of Management within Arthur AndersonArthur Anderson was one of the biggest accounting firms in America. In 2002, the company was involved in accounting scandals of Enron and lost many of its clients. Before this period, Arthur Anderson was one of the profitable businesses providing excellent auditing and consultancy services throughout the USA. In Arthur Anderson,...
5 Pages(1250 words)Case Study

Accounting practices

...Analysis: Accounting Practices Ans Some of the issues plaguing the Profession The paper discusses accounting for business combinations. It highlights the differences between 'Pooling method' and 'Purchase method'. The issues plaguing the profession are highlighted by the Exposure Draft (ED) issued by the Financial Accounting Standard Board. Main issues are: i. The existing accounting practices are found to be providing information that is less useful in determining 'firm value' compared to that provided by the 'Purchase Method'. ii. The 'Pooling Method', used at present, imposes added costs to the users and prepares of the financial...
2 Pages(500 words)Essay

Managerial Accounting Practices

...sales commission paid to distributors by expanding Claire’s Antiques own showroom network. The functions of the Managerial Accountant will be crucial in identifying new expansion territories, which is a prime goal of Claire’s Antiques, setting up proper sales outlets and contacting/interacting with prospective new customers; the primary question being what is the required rate of return to make a new investment worthwhile.7 7= http://www.referenceforbusiness.com/encyclopedia/Man-Mix/ Managerial-Accounting.html References used: Damiano, Joseph. (2005, January 10). Just In Time Inventory: A Financial Perspective. Retrieved April 7, 2006, from URL: Website:...
5 Pages(1250 words)Essay

Managerial Accounting Practices

...Managerial Accounting Practices An organization these days is striving hard due to cut throat competition it is facing due to the wave of globalization that has currently captured today’s business environment. Management needs to be well informed about the their business so that they can have an idea what is the current standing of their business, where they want to reach and what measures are needed to be taken to reach their goals. While financial accounting provide information to the external stakeholders such as stockholders, creditors, and government bodies, managerial accounting on the other side provide information that is of pivotal importance for management to...
3 Pages(750 words)Essay

Andersen LLP: Questionable Accounting Practices

...Abstract Arthur Andersen LLP, one of the five famous accounting firms lasted in business from 1913 to the end-of August 2002. The downfall of the firm was brought about by collective effects of, a number of clients going bankrupt (or closer to it) and ensuing doubts about the credibility of the relevant audits conducted by the Arthur Andersen LLP. Three questions have been answered to the best of my ability. Questions and Answers Question No. 1 Describe the legal and ethical issues surrounding Andersen’s auditing of companies accused of accounting improprieties? Answer : Legal and Ethical issues: Auditing of companies by Andersen Arthur Andersen LLP was a well-known Chicago based accounting firm. The firm started the business... raised...
7 Pages(1750 words)Essay

Enron and Arthur Anderson

...). The company files for bankruptcy, dismissing a large number of employees in the course. Part 6 The stock holders put in funds in the company. Consequently, Enron’s board of directors have a social responsibility of enhancing the worth of the stockholder’s investments through activities that are profitable. In addition, the board of directors have a social duty to give the stakeholders and other owners with reliable and accurate financial details (Bryce 63). The board of directors are also required to have in existence a system of inner managements which gives sensible pledges of both the safety and consistency of the company’s assets from unlawful disposition, use, or acquisition. Part 7 Arthur...
4 Pages(1000 words)Research Paper

A Sad Tale: The Demise of Arthur Anderson

...A Sad Tale, the Demise of Arthur Anderson College A Sad Tale, the Demise of Arthur Anderson Arthur Anderson was a major accounting firm that had win over the market through strategy and innovation. The firm employed technology to win and marketing strategy to win over many contractors leading to a rapid growth of the organization. However, the firm eventually collapsed as a result of poor strategic management at a time when competition was at its peak in the business environment. When the management failed to manage the tension between the audit and the consulting department, the organization lost employee trust. The greed for high profits led to the loss of accountability, tension with the government and loss of corporate images... . As a...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Arthur Anderson: Questionable Accounting Practices for FREE!

Contact Us