Ethics and Auditing
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Enron and One.Tel: Employee Entitlements After Employer Insolvency in the United States and Australia - (Australian Renegades Championing the American Dream)
SMU Law Review Volume 56 Issue 2 Article 10 2003 Enron and One.Tel: Employee Entitlements after Employer Insolvency in the United States and Australia - (Australian Renegades Championing the American Dream) Louise W. Floyd Follow this and additional works at: https://scholar.smu.edu/smulr Recommended Citation Louise W. Floyd, Enron and One.Tel: Employee Entitlements after Employer Insolvency in the United States and Australia - (Australian Renegades Championing the American Dream), 56 SMU L. REV. 975 (2003) https://scholar.smu.edu/smulr/vol56/iss2/10 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in SMU Law Review by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. ENRON AND ONE.TEL: EMPLOYEE ENTITLEMENTS AFTER EMPLOYER INSOLVENCY IN THE UNITED STATES AND AUSTRALIA (AUSTRALIAN RENEGADES CHAMPIONING THE AMERICAN DREAM?) Louise W. Floyd* Enron 401(k) Chief Defends Handling of Plan, Discloses He Sold Stock in June -The Wall Street Journal, February 8, 2002.' Scandal of unpaid workers-The One. Tel Meltdown -The Australian, June 6, 2001.2 ARGE-scale corporate collapse is, sadly, a familiar problem in the United States and Australia. The issues raised by such calamities, in terms of corporate governance and accounting standards, are being addressed by articles in the fall edition of this journal that deal with * Barrister, Supreme Courts of New South Wales and Queensland; Lecturer in Law, T.C. Beirne School of Law, The University of Queensland, Australia. The author wishes to thank the many people who enriched her life and understanding of American law and culture throughout her 2002 sabbatical to the United States, during which time this article was written. -
ASIC 2007–2007 Annual Report
ASIC ANNU ASIC A L REPO R T 07–08 ASIC acHIEVEMENTS RECOGNisED 2007–08 Annual reporting Other communication Environmental management ASIC Annual Report 2006–07 Annual Report Awards from the Society of ASIC’s Sydney site is certified to Gold Award 2008 for overall Technical Communication’s International Standard (ISO excellence in annual reporting Australian and International 14001: 2004 Environmental from Australasian Reporting competitions Management Systems). Awards Inc. ASIC Summer School 2007 07–08 (program and directory) ASIC Annual Reports and Distinguished, Australia 2007 publications for companies Distinguished, International 2007 available from www.asic.gov.au or phone 1300 300 630 Your company and the law Excellence, Australia 2007 Consumer publications available Super decisions from www.fido.gov.au or phone Distinguished, Australia 2007 1300 300 630 Excellence, International 2007 CONTENTS CONTacT DETaiLS Letter of transmittal 01 How to find ASIC Visit us Melbourne: Level 24, ASIC at a glance www.asic.gov.au 03 120 Collins Street, Melbourne. Our key achievements 04 (For company registration, document lodgment, For consumers and investors searches and fees, visit the FIDO Centre, Chairman’s report 06 www.fido.gov.au Ground Floor, 120 Collins Street, Melbourne.) Financial summary 10 www.understandingmoney.gov.au Sydney: Level 18, 1 Martin Place, Sydney. Regulating during market turbulence 12 (For company registration, document lodgment, Major enforcement actions 14 How to contact ASIC searches and fees, visit Level 8, City Centre Tower, 55 Market Street, Sydney.) Consumers and retail investors 16 Email us at [email protected] Adelaide: Level 8, Allianz Centre, Capital market integrity 20 Phone us on 1300 300 630 • To report misconduct in financial markets, 100 Pirie Street, Adelaide. -
The Pattern of Fraudulent Accounting : Ethics, External Auditing and Internal Whistle-Blowing Process
Journal of Governance and Regulation / Volume 5, Issue 4, 2016 THE PATTERN OF FRAUDULENT ACCOUNTING : ETHICS, EXTERNAL AUDITING AND INTERNAL WHISTLE-BLOWING PROCESS Loredana Ferri Di Fabrizio * * University “Gabriele d’Annunzio”, Chieti-Pescara, Italy Abstract How to cite this paper: Ferri Di The ongoing debate in the literature centres on the compromised Fabrizio, L., (2017). The Pattern Of auditor’s independence in consequence of the relevant provisions Fraudulent Accounting : Ethics, External Auditing And Internal Whistle-Blowing perceived for non-audit services provided to the audited clients. Process. Journal of Governance and The accounting scandals that have occurred over the past two Regulation, 6(1), 12-25. decades show the lack of competence and independence of external http://dx.doi.org/10.22495/jgr_v6_i1_p2 auditors, who kept quite in the face of attempted frauds. The case Copyright © 2017 The Author of Tesco represents an undeniable example of the loss of auditor’s independence, who failed to detect accounting manipulation This work is licensed under the Creative Commons Attribution-NonCommercial confirming the importance of whistle-blowing procedures in 4.0 International License (CC BY-NC 4.0) disclosing concerns before they become serious problems. When http://creativecommons.org/licenses/b turnover occurs in CEOs it is more likely that a rotation in external y-nc/4.0/ auditors occurs as well. Finally, changes in top management enable ISSN Online: 2220-9352 whistle-blowing actions to be successful, interrupting the ISSN Print: 2306-6784 organization’s dependence on serious wrongdoings and preventing Received: 26.11.2016 a disastrous ending. The success of whistle-blowing in preventing Accepted: 20.12.2016 company failure makes it an effective instrument of сorporate пovernance. -
The Review Class Actions in Australia
SECTION ONE The Review Class Actions in Australia 2015/2016 Contents 03 Introduction SECTION ONE 04 Headlines SECTION TWO 13 Multiple class actions SECTION THREE 17 Parties and players SECTION FOUR 20 Red hot – litigation funding in Australia SECTION FIVE 24 Settlements — the closing act SECTION SIX 29 Recent developments in class action procedure SECTION SEVEN 33 Global developments SECTION EIGHT 36 Outlook – what’s next for class actions in Australia? HIGH NUMBER CONSUMER OF ACTIONS CLASS ACTION THREAT STATE THIS YEAR OF Rise in ORIGIN consumer class actions Largest FY16 settlement 35 actions DePuy hip launched 8 replacement potentially up to in FY16 in FY15 35 class actions were $1.75 launched in FY16, BILLION 29 following a historic high of WERE IN Highest value 11 $250 claims filed in FY16 MILLION NSW 40 class actions launched the previous year 2 King & Wood Mallesons Introduction Welcome to our fifth annual report on class action practice in Australia, in which we consider significant judgments, events and developments between 1 July 2015 and 30 June 2016. It was another big year for new filings, with at least 35 new class actions commenced, of which 29 were filed in New South Wales. This is a similar level of new actions to last year (up from previous periods). 16 class actions settled (2014/15: 12), and more than an estimated $600 million has been approved in settlement funds. Looking deeper into the numbers, consumer claims have seized the spotlight in a number of ways: the biggest single settlement was the $250 million settlement of a consumer claim relating to DePuy International hip replacement products; the highest value claims filed are consumer actions in relation to the alleged use of defeat devices in vehicles, with one media report estimating the total value of the claim at $1.75 billion; and the bank fees class action against ANZ was a consumer class action that failed. -
Creative Accounting, Fraud and International Accounting Scandals
Creative Accounting, Fraud and International Accounting Standards Michael Jones University of Bristol [email protected] 1 Overview • Based on Book: Creative Accounting, Fraud and International Accounting Scandals • Investigates nature of creative accounting and fraud • Examines history of accounting scandals • Looks at creative accounting, fraud and accounting scandals in 13 countries worldwide • Focus on political aspects 2 Creative Accounting 3 Two Quotes “How do you explain to an intelligent public that it is possible for two companies in the same industry to follow entirely different accounting principles and both get a true and fair audit report?” M. Lafferty “Every company in the country is fiddling its profits”. I. Griffiths 4 Definitions 1. Fair Presentation Using the flexibility within accounting to give a true and fair picture of the accounts so that they serve the interests of users 5 Definitions 2. Creative Accounting Using the flexibility within accounting to manage the measurement and presentation of the accounts so that they serve the interests of preparers 6 Definitions 3. Impression Management Using the flexibility of the accounts (especially narrative and graphs) to convey a more favourable view than is warranted of a company’s results serving the interests of preparers 7 Definitions 4. Fraud Stepping outside the Regulatory Framework deliberately to give a false picture of the accounts 8 Definitions No Flexibility to give Flexibility to Flexibility to Flexibility a “true and fair“ give a give a view creative view fraudulent view Regulatory Working within Working within Working framework regulatory regulatory framework outside eliminates framework to ensure to serve preparer’s regulatory accounting choice users’ interests interests framework Within regulatory framework Outside regulatory framework 9 Managerial Motivation 1. -
Auditing Techniques to Avoid Cost Accounting Frauds
Volume 7 No 2 (2018) | ISSN 2158-8708 (online) | DOI 10.5195/emaj.2018.134 | http://emaj.pitt.edu Auditing Techniques to Avoid Cost Accounting Frauds Vedat Akman Beykent University, Turkey | [email protected] Berkan Acar Yalova University, Turkey | [email protected] Cevdet Kızıl Istanbul Medeniyet University, Turkey | [email protected] Volume 10 No 1 (2020) | ISSN 2158-8708 (online) | DOI 10.5195/emaj.2020.210 | http://emaj.pitt.edu |Abstract Today, we observe the importance of accuracy of financial statements in every corporation. Accounting scandals have caused important losses both in the macro and micro levels. This issue proves the significance of financial statement accuracy. This accuracy is provided by the trust environment. Therefore, it is necessary to provide the required environment of confidence for financial markets to improve and function effectively against increasing accounting frauds gradually. That can only be possible by using different auditing techniques, running inventory counting such as cash and stock, establishing strong internal controls, managing efficiently and benefiting from technology integrated auditing. The aim of this study is to investigate the most effective auditing techniques to avoid cost accounting frauds. In this research, the most effective auditing techniques for detecting and preventing fraud are investigated by using the case analysis method. Also, the well known scandals related with Olympus, Worldcom, Tesco, Sunbeam and Parmalat companies are examined as a part of the case analysis. Finally, recommendations and suggestions regarding fraud prevention methods are presented. Keywords: Accounting, Cost Accounting, Auditing, Scandals, Fraud New articles in this journal are licensed under a Creative Commons Attribution 3.0 United States License. -
Shareholder Class Actions in Australia – the Perfect Storm? 669
2008 Shareholder Class Actions in Australia – the Perfect Storm? 669 SHAREHOLDER CLASS ACTIONS IN AUSTRALIA – THE PERFECT STORM? MICHAEL J LEGG* I INTRODUCTION Shareholder class actions are a recent but growing phenomenon on the Australian legal landscape. Seven out of ten new class actions are now shareholder related,1 and Australia’s largest litigation funder, IMF (Australia) Limited, is bracing itself for an increase in class actions over the next few years.2 The use of the class action for shareholder claims was foreseen by the Australian Law Reform Commission in 1988 when it recommended the enactment of a class action procedure in Australia,3 and by the Federal Attorney-General in 1991 during the Second Reading Speech for the federal class action procedure.4 However, shareholder class actions have only been regularly commenced in the courts since approximately 2004. Prominent examples of the shareholder class action are the proceedings commenced against GIO, Telstra, Concept Sports, Harris Scarfe, HIH, the Australian Wheat Board, Multiplex, Aristocrat Leisure, Village Life and Centro Property Group. If claims against insolvent corporations by shareholders are included, then the Sons of Gwalia, Ion and Media World actions may be added. The aim of this article is to explain why the number of shareholder class actions is increasing. Indeed, the thesis advanced in this article is that there has been a convergence of factors that has led, and will continue to lead to greater litigation in relation to shareholder claims – a perfect storm. The rise of the shareholder class action may be explained through the transformation theory of * Senior Associate, Clayton Utz. -
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Cambridge University Press 978-0-521-82684-6 - Corporate Collapse: Accounting, Regulatory and Ethical Failure, Second Edition Frank Clarke, Graeme Dean and Kyle Oliver Excerpt More information PART I Accounting in Crisis – a Farce to be Reckoned With © Cambridge University Press www.cambridge.org Cambridge University Press 978-0-521-82684-6 - Corporate Collapse: Accounting, Regulatory and Ethical Failure, Second Edition Frank Clarke, Graeme Dean and Kyle Oliver Excerpt More information CHAPTER 1 Chaos in the Counting-house Corporate accounting does not do violence to the truth occasionally and trivally, but comprehensively, systematically, and universally, annually and perennially. R.J. Chambers, 1991, p. 19. When Bond Corp first announced its loss of almost $1 billion in October 1989 it surprised most of those who felt that they had their finger on the pulse of Australian corporate life.1 Perhaps it shouldn’t have been such a surprise, for it had all happened before, many times, over many decades, all around the world. Different charac- ters, different settings, different companies in different industries – but in similar circumstances – a common pervading regulatory philosophy – procedural input processing rules within a capitalisation-of-expenditure model coupled to sanctions for non-compliance, even when non-compliance made more sense in reporting an entity’s financial state of affairs. And it would happen again. Happen again, indeed! In mid-2001 it hit with added force as the media grappled with Australia’s contribution to the tech-wreck – the dot.com collapses of telcos such as One.Tel. But it was not only the new economy companies that were falling over. -
In Light of the Recent Corporate Accounting Scandals, Business
International Business & Economics Research Journal – February 2007 Volume 6, Number 2 Corporate Ethics: China vs. USA Peng S. Chan, (E-mail: [email protected]), California State University, Fullerton Dennis Pollard, (E-mail: [email protected]), California State University, Fullerton Shirley Chuo, (E-mail: [email protected]), American InterContinental University ABSTRACT Fairness is one of the basic aspects of business exchange. Ethics are principles used to establish fairness. This study will look at background and origins for different American and Chinese ethical beliefs. It is important for U.S. and Chinese firms to understand each other’s cultural perspectives, especially as the Chinese market opens up. Methods to resolve ethical conflict will be reviewed. Business agents from both cultures can relate and deal with each other if they have the knowledge, skills, and patience to do so. This study builds on prior research that suggests that younger Chinese are more concerned with profit than with abiding by regulations or adhering to corporate ethics. The major argument of this study is that future Chinese business leaders, born after China’s one- child policy was implemented in 1979, will be primarily concerned with self-interest and making decisions that will benefit them individually. Guanxi (interpersonal connections or human relationships), corporate ethics and social responsibility (CESR) beliefs will be reduced in importance and influence. American managers should incorporate this information when formulating a “China strategy”. INTRODUCTION ne of the most fundamental aspects of business is fairness. When two parties meet to transact business each desires to obtain a product that is of least equal value for the item they are exchanging. -
Enhancing Corporate Accountability Through Contextual Ethical Exercises
Enhancing Corporate Accountability through Contextual Ethical Exercises Adrian Evans∗ and John Howe+ The collapse of Enron in the United States and of HIH Insurance in Australia, along with the findings of the Jackson Inquiry into the James Hardie Industries medical compensation fund, highlight a perceived decline in corporate ethical accountability. Each of these events featured lawyers behaving unethically or otherwise inadequately in a broad social context. Realistic ethics education of law students, many of whom will become future corporate officers and directors, offers harm minimisation in response to rising standards of corporate accountability. Ethical simulations of this nature are a part of the wider arsenal of strategies to limit the potential for future corporate collapse and dishonour. This paper explains how it is possible to successfully expose law students to the reality of ethical conflict within corporate environments. On-line simulation of corporate ethical dilemmas allows students and trainee officers to anticipate what they will encounter in the corporate workforce and prepare them to apply alternative ethical models in deciding how to respond to those dilemmas. Monash University Law School and the Melbourne Law School are collaborating in producing two online exercises to introduce students to ethical pitfalls in directors’ duties and corporate tax evasion. The simulations are analysed in the context of initial student evaluations and the paper concludes with a brief exploration of the potential for future ethical education initiatives. Introduction Currently, Australian law students tend to learn about legal ethics, if they learn about it at all, as a distinct set of rules, rather than as a method of resolving moral conflict. -
The Evolution of Presentational Changes to Corporate Social Responsibility Disclosures: an Historic Analysis of an Electricity Company Quinn, M., & Ruane, H
The evolution of presentational changes to Corporate social responsibility disclosures: An historic analysis of an electricity company Quinn, M., & Ruane, H. (2018). The evolution of presentational changes to Corporate social responsibility disclosures: An historic analysis of an electricity company. Revista de Ciências Empresariais e Jurídicas, 30, 7. Published in: Revista de Ciências Empresariais e Jurídicas Document Version: Publisher's PDF, also known as Version of record Queen's University Belfast - Research Portal: Link to publication record in Queen's University Belfast Research Portal Publisher rights © 2019 The Authors. This is an open access article published under a Creative Commons Attribution-NonCommercial-ShareAlike License (https://creativecommons.org/licenses/by-nc-sa/4.0/), which permits use, distribution and reproduction for non-commercial purposes, provided the author and source are cited and new creations are licensed under the identical terms. General rights Copyright for the publications made accessible via the Queen's University Belfast Research Portal is retained by the author(s) and / or other copyright owners and it is a condition of accessing these publications that users recognise and abide by the legal requirements associated with these rights. Take down policy The Research Portal is Queen's institutional repository that provides access to Queen's research output. Every effort has been made to ensure that content in the Research Portal does not infringe any person's rights, or applicable UK laws. If you discover content in the Research Portal that you believe breaches copyright or violates any law, please contact [email protected]. Download date:24. Sep. 2021 RCEJ/Rebules | N.º 30 - 2018 | pp. -
Enron and One.Tel: Employee Entitlements After Employer Insolvency in the United States and Australia - (Australian Renegades Championing the American Dream) Louise W
SMU Law Review Volume 56 | Issue 2 Article 10 2003 Enron and One.Tel: Employee Entitlements after Employer Insolvency in the United States and Australia - (Australian Renegades Championing the American Dream) Louise W. Floyd Follow this and additional works at: https://scholar.smu.edu/smulr Recommended Citation Louise W. Floyd, Enron and One.Tel: Employee Entitlements after Employer Insolvency in the United States and Australia - (Australian Renegades Championing the American Dream), 56 SMU L. Rev. 975 (2003) https://scholar.smu.edu/smulr/vol56/iss2/10 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in SMU Law Review by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. ENRON AND ONE.TEL: EMPLOYEE ENTITLEMENTS AFTER EMPLOYER INSOLVENCY IN THE UNITED STATES AND AUSTRALIA (AUSTRALIAN RENEGADES CHAMPIONING THE AMERICAN DREAM?) Louise W. Floyd* Enron 401(k) Chief Defends Handling of Plan, Discloses He Sold Stock in June -The Wall Street Journal, February 8, 2002.' Scandal of unpaid workers-The One. Tel Meltdown -The Australian, June 6, 2001.2 ARGE-scale corporate collapse is, sadly, a familiar problem in the United States and Australia. The issues raised by such calamities, in terms of corporate governance and accounting standards, are being addressed by articles in the fall edition of this journal that deal with * Barrister, Supreme Courts of New South Wales and Queensland; Lecturer in Law, T.C. Beirne School of Law, The University of Queensland, Australia. The author wishes to thank the many people who enriched her life and understanding of American law and culture throughout her 2002 sabbatical to the United States, during which time this article was written.