This website uses cookies to ensure you have the best experience. Learn more

Assignment 1: Review Of Accounting Ethics

1098 words - 5 pages

Accounting ethics is necessary people financial consultants, accountants or accounting executives are privy to confidential, private and sensitive information about people, companies and their clients. One trusts an accountant with information regarding their finances or business. That’s why it is so important for ethics in accounting and in financial reporting. It is important for ANY type of business to practice ethics and not breach them.
History and background of Adelphia Communications Corporation
Adelphia Communications Corporation or “ACC, was a small family-owned cable television company. It was established in a small Pennsylvania town. John Rigas started Adelphia ...view middle of the document...

(Giroux, 2008)
Out the trial and case, Adelphia Communications Corporation and its subsidiary, Adelphia Business Solutions (“ABIZ”) filed for Chapter 11 bankruptcy. Also four members of the Rigas family (who founded the company) and two other managers resigned from the Board of Directors and the ACC and ABIZ. They were also arrested under a twenty-four-count indictment which included charges of conspiracy, securities fraud, wire fraud and bank fraud. (Mahony, 2005). Adelphia created fake transactions and false documents that indicated debts were paid back. The Rigas family who were the founders, used Adelphia funds to:
purchase stock for the Rigas family, timber rights, built a golf course, corporate jets were used for shopping trips, pay off margin loans for family members. (Giroux, 2008). Millions of dollars were invested in a financially strapped pro hockey team because one of the directors of Adelphia was a fan. According to the Securities and Exchange Commission, ACC’s collapse represents “one of the most extensive financial frauds ever to take place at a public company.” (Mahony, 2005).
Ethical Breach
The company is no longer trusted and went bankrupt. A lot of things went wrong for the company. Internal control was in shambles. The family was too involved in the process mixing business with pleasure. It is one thing to have a family business and see it through growth and development, but to have side businesses, unreported financial claims is unethical and was illegal. The SEC conducted an investigation and according to the SEC the complaint was that Adelphia, at the direction of the individual defendants:
(1) Fraudulently excluded billions of dollars in liabilities from its consolidated financial statements by hiding them on the books of off-balance sheet affiliates;
(2) Falsified operations statistics and inflated earnings to meet Wall Street's expectations;
and (3) concealed rampant self-dealing by the Riga’s Family, including the undisclosed use of corporate funds for Rigas Family stock purchases and the acquisition of luxury condominiums in New York. ( Out of the lawsuit, the Commission found that the defendants violated the antifraud, periodic reporting, record keeping, and internal controls provisions of the federal securities laws. The Director of...

Other Papers Like Assignment 1: Review of Accounting Ethics

Ethics- Assignment 1

1412 words - 6 pages ethics This is a true story where I had to make, what I consider until today, a very difficult moral decision. Back in my high school days, most students were getting along very well as we had similar life experience and family background. Throughout my first and second secondary years, I was hanging out mostly with the same group of girls: Dorbreen-Ken, Stephanie and Marie-France. We were considered inseparable and we had the same classes throughout

Accounting Information Assignment 1

540 words - 3 pages present. Amount to capitalize:  Limited to actual amount incurred or avoidable interest whichever is less. DOES NOT REQUIRE SPECIFIC BORROWINGS  Avoidable interest = weighted average rate (or specific rate if present) times weighted average expenditures. IV. EXCHANGE OF NONMONETARY ASSETS Accounting treatment depends on whether the exchange is with or without commercial substance: WITH commercial Substance:  There is a business rationale

Managmenet Accounting 2 Assignment 1

1612 words - 7 pages Question 1 (10 marks) Vaughan Speed Clean — budgeting The Vaughan Speed Clean company is a young company that operates three car wash locations in the Greater Toronto Area. The owner relies on the abilities of three managers to run the car wash locations. At the end of each quarter, the owner evaluates the performance of each car wash location. His evaluations determine the size of the location manager’s bonus. If the location achieves an

Accounting Code of Ethics

1255 words - 6 pages aCCOUNTING cODE of eTHICS LaToya Wallace AC504 APril 10, 2012 Accounting Code of Ethics Introduction The accounting system is ever changing and constantly evolving. Therefore, it is extremely that accountants adhere to very high ethical standards. The code of ethics for accountants “guides those in the profession to behave in a respectful, controlled and moral way. Clients need to have confidence in the business practices of

Importance of Ethics in Accounting

1086 words - 5 pages Running head: IMPORTANCE OF ETHICS IN ACCOUNTING Importance of Ethics in Accounting Everest University Importance of Ethics in Accounting Accounting fraud is common but is not as trivial as the common cold; a typical organization loses annual revenues of nearly 5 percent to fraud. In addition, almost one-quarter of reported fraud is exceeding $1 million dollars. The accounting industry is constantly growing and changing

Notes 1 for Introduction of Managerial Accounting

1540 words - 7 pages Unit of each cost-allocate base used to allocate indirect costs to the job (normal costing so use budgeted values) 6. Compute the indirect costs allocated to the job: Budgeted Allocation Rate x Actual Base Activity For the Job 7. Compute total job costs by adding all direct and indirect costs together. Three Methods for Adjusting Over/Underapplied Overhead: 1. Adjusted allocation rate approach—all allocations are recalculated with the actual

Assignment #1: Electronic Surveillance of Employees

1454 words - 6 pages Abstract For assignment one I am conducting an analysis of a video that addresses the issues of electronic surveillance of employees. I am going to explain where an employee can reasonably expect to have privacy in the workplace. Explain whether it makes a difference in privacy if an employee is in an open area or in an enclosed office. Explain if the boss in the video, Herman, needs to know whether his salespersons are being honest is a

Assignment 1 Choose One Of The Option

2599 words - 11 pages or injection to patients so that they can retain and sell the original medication (Benson, Madensen & Eck, 2009). Review of Literature Numerous cases have been addressed by various criminal fields on white-collar crimes worldwide. Similarly, the dishonest practise is still rampant in the various branches and fields of medicine and healthcare. The criminal justice process is a procedure that is followed to ensure that everybody receives

Principles of Security 5th Edition Chapter 1 Review Questions

844 words - 4 pages Review Questions 1. What is the difference between a threat agent and a threat? A threat agent is a specific component that represents a danger to an organization’s assets. And a threat is an object, person or entity that represents a constant danger. 2. What is the difference between vulnerability and exposure? Vulnerability is a weakness is a system that leaves the system open to attacks. Exposure is the known vulnerabilities that

Reflection Assignment 1 Following Johns Model Of Structured Reflection

1540 words - 7 pages Reflection Assignment 1Following Johns Model of Structured ReflectionJohns Model of Structured Reflection (Johns 1998)1.Write a description of the experience. Ask yourself:*'What are the significant issues I need to pay attention to?'I was asked to complete a pre-operative assessment on an elderly lady for cataract extraction, using an I.C.P. for intra ocular surgery under LA. During the assessment process she expressed several times that she

Complexities Of The U.S. Financial System/ Assignment 1

953 words - 4 pages Complexities of the U.S. Financial System/Assignment 1 Student's Name Professor's Name FIN 100: Principles of Finance December 2014 The U.S. financial markets definitely play a big role in the economy. Unless people invest in businesses, there is no way that they can get started. This is also how they eventually grow in the future in order to meet county's needs and demands. The amount of stocks bought and sold each

Related Essays

Assignment 1: Review Of Accounting Ethics

1711 words - 7 pages Assignment 1: Review of accounting ethics 1 Assignment 1: Review of Accounting Ethics By February 1, 2013 ACC 557: Financial Accounting Oleksii Morgun Strayer University at Arlington Campus School of Business Administration (M.S. Accounting Program) Assignment  1:  Review  of  Accounting  Ethics                            2     Abstract This research writing is to

Review Of Accounting Ethics

1445 words - 6 pages Baker C. R. (2012), ‘Review of “Accounting ethics and the near collapse of the world’s financial system”, by Michael Pakaluk and Mark Cheffers’, Accounting, Economics and Law, vol.2, no.1, pp.1-4 Bell, R., and Friedman, H., et al. (2005). Conflict of Interest: The Common Thread Underlying Ethical Lapses. Conroy, S., and Emerson, T. (2006). Changing Ethical Attitudes: The Case of the Enron and ImClone Scandalsn. SOCIAL SCIENCE QUARTERLY

Review Of Accounting Ethics

1666 words - 7 pages | Assignment 1: Review of Accounting Ethics | | | | Assignment 1: Review of Accounting Ethics | | | Doing the right thing matters. Every day, workers make decisions that are vital to a company’s success. How those decisions are made is just as important as the decisions themselves. In every company there are shareholders, consumers, business partners, and employees who have placed their trust in workers to act

Afx9003: Accounting Assignment 1

2352 words - 10 pages AFX9003: Accounting Assignment 1 PART A There are three options for Christina and David in terms of selecting a business structure. These are sole proprietor, partnership and company. Option 1: Sole proprietor A sole propriety is an option for the start-up whereby one individual of the pair would control and manage the business. For example, David starts up, controls and manages the business and Christina is merely employed by David. The