Financial Statement Fraud.Enron.AICPA

S very quickly became andersen consulting grew to

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Unformatted text preview: per partner Became compensation wasn’t enough; saw everyone else getting rich rich Audit became a loss leader – Easier to sell lucrative consulting services from the inside – Became largest consulting firms in the U.S. very quickly Became (Andersen Consulting grew to compete with Accenture) (Andersen A few auditors got too close to their clients Entire industry, especially Arthur Andersen, was Entire punished for actions of a few punished © 2003, 2005 by the AICPA Educators Educators Need to teach Ethics more Need to teach students about fraud—offer Need a “fraud” course “fraud” Need to teach students how to think – We have taught them how to copy, not think – We have asked them to memorize, not think – We have done what is easiest for us and We easiest for our students easiest © 2003, 2005 by the AICPA Financial Statement Frauds Financial Revenue/Accounts Receivable Frauds Revenue/Accounts (Global Crossing, Quest, ZZZZ Best) (Global Inventory/Cost of Goods Sold Frauds Inventory/Cost (PharMor) (PharMor) Understating Liability/Expense Frauds Understating (Enron) (Enron) Overstating Asset Frauds (WorldCom) Overal...
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This document was uploaded on 03/29/2014.

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