Auditing Scandals

Accounting and auditing scandals in the world

Assignment 1

Alisha Angelique potgieter

22339612

Index

      • Scandals in the USA Page 4

1. Enron Page 4

  1. Who were the auditors?

  2. Fines and penalties

  3. What happened?

2. Bristol-Meyers Squibb Page 5

  1. Who were the auditors?

  2. Fines and penalties

  3. What happened?

3. Worldcom Page 6

  1. Who were the auditors?

  2. Fines and penalties.

  3. What happened?

4. Xerox Page 7

  1. Who were the auditors?

  2. Fines and penalties.

  3. What happened?

      • Scandals in South Africa Page 8

1. Sarah Fox Children’s Home Page 8

  1.   Who were the auditors?

  2. Fines and penalties.

  3. What happened?

      • Scandals in Australia Page 9

1. HIH Insurance Page 9

  1.   Who were the auditors?

  2. Fines and penalties.

  3. What happened?

      • Scandals in Italy Page 10

1. Parmalat Page 10

  1.   Who were the auditors?

  2. Fines and penalties.

  3. What happened?

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Scandals in the USA

  1. Enron

  1. Enron was investigated by:

    • DOJ

    • SEC

    • FERC

    • Various congressional committees

  1. The company’s auditor was Mr. Arthur Anderson and he was convicted of obstruction of justice for destroying Enron documents.

  2.   Michael Kopper, the ex-executive of Enron pled guilty to two felony charges. The CEO commented that the company may face $100 billion in claims and liabilities.

  3. Enron boosted profits and hid debts amounting to the total of $1 billion. This is illegal in all countries, seeing as it does not comply with IFRS.

  3. They did this by improperly using off-the-books partnerships.

  3. They manipulated the Texas power market as well as the California energy market.

  3. Furthermore they bribed foreign government in order to get...