Week Two Checkpoint ACC260

Week Two Checkpoint ACC260 - Andrew Fastow, the CFO of...

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Week Two Checkpoint – Unethical Practices Well first off, the “apparent” mistakes that Arthur Anderson made cannot be proven that he did or didn’t make those mistakes on purpose. No one has heard his side of the story, as he is nowhere to be found. The lack of information caused by Enron staff not providing critical information, or failure on the part of AA personnel to work it out is one of several reasons that these mistakes cannot be proven. AA failed to recognize the Generally Accepted Accounting Principles that prohibit the recording of shares issued as an increase unless they were issued for cash. They also failed to advise Enron’s audit committee that
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Unformatted text preview: Andrew Fastow, the CFO of Enron, and his helpers were involved in the conflict of interest situations without adequate alternative means of managing these conflicts. AA also supposedly shredded all the audit documents. These documents were supposedly shredded before Enron announced that they had a $618 million restatement of earning and a $1.2 billion reduction of equity on October 16, 2001. An auditor should make decisions for the public interest rather than the interest of management or current shareholders simply because the public interest is what is going to keep the business running enough for the shareholders to profit at any time....
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This note was uploaded on 07/15/2011 for the course ACCT 260 taught by Professor Mickipitcher during the Spring '11 term at University of Phoenix.

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