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Unformatted text preview: gain at other expense • Extreme imbalance
Examples of Accounting Ethics:
1) Enron: Houston based commodities, energy and service corporation
What happened: Shareholders lost $74 billion, thousands of employees and
investors lost their retirement and many employees lost their jobs. They kept huge
debts off balance sheets.
Main Players: CEO Skilling and former CEO Ken Lay
2) WorldCom: Telecommunications Company
What happened: Inflated assets as much as $11Billion, 300,000 lost jobs and $180
billion losses for investors. The internal auditing dept. uncovered 3.8billion in
Main Players: CEO Bernie Ebbers
3) Lehman Brother Scandal: Global Financial Services firm
What happened: Hid over $50 billion in loans disguised as sales. They allegedly
sold toxic assets to Cayman Island banks with the understanding they would get it
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This document was uploaded on 02/28/2014 for the course MKT 342 at Loyola New Orleans.
- Fall '12