...Corporate governance heavily refers to the whole structure of rights, processes and controls established internally and externally over the management of a business entity with the objective of protecting the interests of its stakeholders from any type of loses incurring. To begin with, firstly there are three types of auditors in the corporate governances, internal, external and government auditors. The role of the internal auditors in the corporate governance is to evaluates corporate activities, controls or procedures and ensures that they are adequate and in compliance with senior management's recommendations and human resources guidelines. An internal audit also helps a firm adhere with regulatory standards and industry practices.An internal auditor evaluates a firm's processes, "controls" and mechanisms to ensure that they are "adequate" and "functional". A control is a group of instructions that top management puts into place to avoid losses due to human error, technology breakdowns or fraud. A "functional" control provides corrections to internal problems. A control is "adequate" when it clarifies instructions for job performance and problem reporting. An auditor also ensures that a firm's activities and controls abide by government mandates or industry regulations. (Codjia, 2013) Moreover the role and responsibility of an external auditor is to provide assurance to the general public regarding the truth and fairness of the information presented in the audited reports...
Words: 2531 - Pages: 11
...VANITA YADAV C.V. BAXI CORPORATE GOVERNANCE FAILURE AT SATYAM “Why do you want to quit Satyam,”1 the panel member asked the 30-year-old employee being interviewed. Satyam Computer Services Ltd (“Satyam”) was India’s fourth-largest computer services company; however, many employees had left and applied for new jobs after news of a US$1.4 billion corporate fraud at Satyam became public in December 2008. 2 Satyam’s governance failure had severely shaken its stakeholders and the global business community, and the business press worldwide referred to Satyam as “India’s Enron”.3 Satyam was listed on the New York Stock Exchange (“NYSE”) in 2001 and on Euronext Amsterdam in 2008. 4 It boasted a large number of clients, including many Fortune 500 companies.5 The founder of Satyam Computer Services, B. Ramalinga Raju (“Raju”), was a highly regarded entrepreneur and an eminent fixture at prestigious corporate events in India.6 In 2007, he was honoured with the Ernst & Young Entrepreneur of the Year award, yet a mere two years later, on 7 January 2009, Raju made the calamitous confession that he had falsified accounts on a grand scale over a long period of time. His shocking announcement sparked a big debate over whether India possessed adequate guidelines for corporate governance. 7 How did Raju commit a fraud of such magnitude? How could a successful company, twice awarded the Golden Peacock award for corporate governance excellence collapse in such a manner? 8 Where did the internal...
Words: 8868 - Pages: 36
...Employment-At-Will Doctrine Doctrine of Employment At-Will Employment at-will is a guideline that is described by American law. This law defines the relationship between employees and employers and also states that the employer have a right to an terminate its relationship with related employees. For the termination of employees, the employer of the organization is free for giving a legal notice to employees or not, if his or her act breaches the contract between the organization and employees (National Conference of State Legislatures., 2013). At the same time, this law does not include any term related to warning that is given by the organization to employees before taking the termination decision. Employment at-will does not describe the subsequent liability of the employers towards the employees and it does not express any term of a contract that could be able to give the right to the employees against their termination. This doctrine states that an employer is free for terminating any employees, whether their work is good or bad (Workplace Fairness. 2013). Before the year of 2000, this doctrine only gives a right to the employees that under this act, the employees are also free for making striking, quit, or ceasing the working process completely to protect their termination, if the decision of employer goes beyond the employment contract work book. In the year of 2000, the Supreme Court of California explained this law and also stated that it is the right of employers...
Words: 1728 - Pages: 7
...LEHMAN BROTHERS: CASE BACKGROUND On September 15, 2008, Lehman Brothers filed for bankruptcy. With $639 billion in assets and $619 billion in debt, Lehman's bankruptcy filing was the largest in history, as its assets far surpassed those of previous bankrupt giants such as WorldCom and Enron. Lehman was the fourth-largest U.S. investment bank at the time of its collapse, with 25,000 employees worldwide. Lehman's demise also made it the largest victim, of the U.S. subprime mortgage-induced financial crisis that swept through global financial markets in 2008. Lehman's collapse was a seminal event that greatly intensified the 2008 crisis and contributed to the erosion of close to $10 trillion in market capitalization from global equity markets in October 2008, the biggest monthly decline on record at the time. The History of Lehman Brothers Lehman Brothers had humble origins, tracing its roots back to a small general store that was founded by German immigrant Henry Lehman in Montgomery, Alabama, in 1844. In 1850, Henry Lehman and his brothers, Emanuel and Mayer, founded Lehman Brothers. While the firm prospered over the following decades as the U.S. economy grew into an international powerhouse, Lehman had to contend with plenty of challenges over the years. Lehman survived them all – the railroad bankruptcies of the 1800s, the Great Depression of the 1930s, two world wars, a capital shortage when American Express spun it off in 1994, and the Long Term Capital Management...
Words: 1770 - Pages: 8
...Economics of Water Abstract Government regulation is needed in today’s industry. While this paper will look at the governance of the economics of water it will start with a brief introduction of the reasons why government regulation is something that the shareholders’ of a corporation should embrace and should ignore the hype from management, media, and academia about why governance is wrong. They tend to mistakenly call all decisions as opportunistic behavior whether it is ethical or not. Regulation should be regarded as a tool to address basic public ends (Dent, 2008). Management should see regulation as a benefit to society. It should engrave a sense of duty to their decision making. There are two types of governance that this paper is going to consider. The first is necessity of internal governance of public corporations. The second is specific industry governance specific to the economics of water. In addressing the internal governance of public corporations, this paper will address a short history of why internal control is regulated by government, some objections to government regulation of internal control, and why these criticisms are unwarranted. By July of 2002 Americans had been plagued by a flood of corporate scandal. The names: Enron, World Com, Adelphia and Arthur Anderson will forever be burned into our history books as those infamous corporations that ruined the lives of millions of people. Their jobs were lost, their pensions disappeared...
Words: 3239 - Pages: 13
...The Japanese corporate governance system differs vastly from the US system. Discuss corporate governance issues that may arise under the Japanese Keiretsu system from the perspective of a).financiers, b). Owners, c). Suppliers, d). Employees. Corporate Governance System in Japan (1) Definition of Corporate Governance Corporate governance deals with the agency problem: the separation of management and finance. This basic agency problem suggests a possible definition of corporate governance as addressing both an adverse selection and a moral hazard problem. The traditional definition of corporate governance was such a narrow view as Shleifer and Vishny (1997) mentioned that the ways in which the suppliers of finance to corporations assure themselves of getting a return on their investment. Recent trend, however, express doubts on the definition that solely focuses on shareholder value. EPA (1998) shows the constituents of corporate governance as follows: Table 1: Constituents of corporate governance Stakeholders | Interest | Desired Management | Shareholders | Maximize profitsAsset protection | Profitable managementSound management | Investors | Efficient investment | Exploitation of profitable investment | Creditors | Protection of receivables | Sound management | Main bank | Corporate growth | Sound managementPursuit of productivity growth | Employees | Pay raiseSecure employment RelationshipPromotion | Profitable managementSound managementSustainable...
Words: 1839 - Pages: 8
..................................................... 5 5. Effects of the scandal, legislative perspective ............................................................................ 5 6. Comment and lesson to Rwandan business sector ...................................................................... 7 6.1. Corporate governance .......................................................................................................... 7 6.2. Committed crimes during the scandals .............................................................................. 10 6.2.1. Insider trading .............................................................................................................. 10 6.2.2. Wire fraud .................................................................................................................... 11 7. Conclusion ................................................................................................................................ 12 8. Authorities................................................................................................................................. 13 1 Lessons from Enron and WorldCom cases 1. Introduction The economies of the nations are built many economic activities, businesses being cornerstone. For them to run smoothly, the States must avoid a strict interference of how business must be conducted. Or, if they...
Words: 5102 - Pages: 21
...includes all assignments, exams, term papers, and other projects required by the faculty mentor. The known submission of another person’s work represented as that of the Learner’s without properly citing the source of the work will be considered plagiarism and will result in an unsatisfactory grade for the work submitted or for the entire course, and may result in academic dismissal. | | MGT-7019 | Jo Ann Davis | | | Ethics in Business | Assignment 7 – Case Study: A Primer on Sarbanes-Oxley | | | ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Faculty Use Only ------------------------------------------------- <Faculty comments here> ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- <Faculty Name> <Grade Earned> <Writing Score> <Date Graded> Case Study: A Primer on Sarbanes-Oxley Tanya M. Johnson MGT 7019: Ethics in Business Northcentral University February 3, 2013 Abstract In the wake of...
Words: 2055 - Pages: 9
...34 must first improve the effectiveness of corporate boards of directors. And now my dreams. My first dream is that one day some investment analyst will conclude his or her report on Dayton Hudson with something like this: "In addition to its excellent strategic thrust and management strength, Dayton Hudson Corporation Kenneth N. Dayton has a premier concept of governance and a premier board of directors, which together offer the best hope for ensuring the corporation's future. So, if you want to buy a share of stock for your new grandchild, this would be a company to select." When some analyst says that about us-or about any other corporation for that matter-it will, at last, be an indication that the market is beginning to look beyond this year's (or even next quarter's) estimate of earnings. If that day ever does come, it will bring recognition that corporate governance is every bit as important as corporate management to ensuring the future of corporate America. My second dream is that as well as of a number of Minneapolis The Dayton Hudson Corposomeday the capital gains tax will be civic and cultural organizations. He ration is known for its profitable wrote this article before his retirement revised along tbese lines: if you hold a growth as a diversified retailing comstock less than a year, the gain (if any) from the Dayton Hudson board. pany, for its merchandising strategy, will be taxed at ordinary income tax for its objective to...
Words: 3473 - Pages: 14
...FedEx Corporation Strategic Audit May 14, 2004 MGMT 449 Prepared by: Clement Chen Lisa Duong Hideo Yang Marny Susanty Mario Vellandi Andrea Betro Forward: This company for this case analysis was chosen by me, Mario Vellandi. I found FedEx interesting because they are one of the top four logistics companies in the world with 2002 group revenues of $24.2 billion. Since I was studying the transport industry, I found them to be an excellent company to analyze while in Strategic Management. Research Process To prepare for this case, I had performed primarily all the research for this case. This process involved first going to the firm’s SEC filings on its website, then downloading the .rtf version of its 2003 10-K, and the following 10-Qs and pre-announcements. After having read and highlighted some 65 pages and notating applicable data for each section of the strategic audit, I copied the data into individual Word documents titled after each respective category. I also utilized company info from the investors section of its site. Next I used the standard and news search functions of Google, among other sites, by combing the term fedex with a combination of various business terms such as competition, weaknesses, swot analysis, and commercials. I had also used combinations with competitors’ names and specific business functions. Next, I had used the advanced features to limit my searches in two ways: by data type, and by domain extension. I found relevant existing secondary...
Words: 10788 - Pages: 44
...each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination. Week One: Introduction to Law Objective: Define the functions of law in society. 1. Precedent evolves from a. state and federal constitutions b. state and federal statutes c. the common law d. a combination of both state and federal statutes and common law Objective: Define the functions of law in society. 2. Once stare decisis and case precedent is established, a. it may be disregarded and overturned by a court if they deem such action appropriate b. it may not be disregarded by a court but may be overturned by state statute c. it may not be disregarded by a court or be overturned by state statute but may only be changed by amendment to the state's constitution d. it may not be disregarded or overturned once established and must be followed without exception Objective: Define the role of law in business. 3. In the cases of Heart of Atlanta Motel v. U.S. and Katzenbach v. McClung, the Supreme Court found illegal discrimination under the Civil Rights Act of 1964 by applying a. the Commerce Clause b. the Supremacy Clause c. the Necessary and Proper Clause d. the Equal Protection Clause Objective: Define the role of law in business. 4. In Cavel International, Inc. v. Madigan, when Illinois passed the statute barring the slaughter of horses primarily for human consumption, Cavel presented each of...
Words: 2675 - Pages: 11
...three security breaches involving 500,000 stolen credit card numbers; another breached 50,000 credit card numbers and lastly, 69,000 in the other hotel chains. The basis of argument by FTC was that the management successfully failed to implement well-know security measures. The plaintiff noted that the Management did not implement a network set-up separating hotel system and the corporate...
Words: 899 - Pages: 4
...multinational corporation, its business power related to the exportation of “American imperialism”, its business ethics related to its theme parks and resorts, and its corporate governance problems under former CEO Michael Eisner. Many blame these kinds of changes in company values and mission to Michael Eisner. Globalization efforts made by The Walt Disney Company would prove costly when it made bad decisions based on naïve assumptions of the cultural acceptance of Mickey Mouse into Japan and France. Tokyo Disneyland emerged as the most profitable theme park, but with TWDC having no stake in the company; and Disneyland Paris, backed heavily by TWDC, had to be restructured only after two years of opening. Domestically, theme park safety had been compromised, all in the name of profit. An embittered declaration for Eisner’s resignation came in 2003 by ousted board member Roy E. Disney, nephew of Walt and last remaining active family member at TWDC, and his trusted friend, Stanley Gold, who resigned the board. Ultimately, Roy Disney helped lead a Disney shareholder revolt that arguably contributed to Eisner’s departure from the company with nearly 45% of shareholders disapproval of Eisner. Table of Contents Introduction 4 Globalization 5 Tokyo Disneyland 5 Disneyland Paris (formerly knownas Euro Disney) 6 Business Power 7 Business Ethics 9 Safety vs. the Bottom Line 11 Corporate Governance 12 Conclusion 13 References 14 Introduction...
Words: 3475 - Pages: 14
...REPORT RE: RECENT ACCOUNTING AND CORPORATE GOVERNANCE SCANDALS Contents INTRODUCTION: 3 CORPORATE GOVERNANCE 5 CORPORATE GOVERNANCE IN IRELAND 5 RESPONSE FROM REGULATORS TO THE MOST RECENT SCANDALS IN BANKING SECTOR 7 US CORPORATE GOVERNANCE at a time of Tyco scandal 8 RESPONSE FROM THE REGULATORS -SARBANES-OXLEY ACT 2002 9 AUDIT 10 EXTERNAL AUDIT 10 INTERNAL AUDIT 11 INTRODUCTION TO ANGLO IRISH BANK 12 The Scandals 12 Loans to Sean Fitzpatrick 13 Irish Life and Permanent Depositing Funds 14 Corporate Governance Situation of Anglo 16 Ernst & Young – External Auditor 17 Impact on Shareholders & The Public 18 Company Law, Financial Regulator, Accounting Standards IFRS and GAAP 19 TYCO INTERNATIONAL 20 DETAILS OF TYCO’S SCANDAL 21 ACCOUNTING ISSUES IDENTIFIED 22 THE CORPORATE GOVERNANCE WEAKNESSES AT TYCO 22 PERFORMANCE OF EXTERNAL AUDITORS 23 CONCLUSION 27 The Main Reasons for The Scandals 27 Steps taken afterwards-will they prevent similar events happening in the future? 33 END REFLECTION 36 Bibliography: 37 Appendices: 41 INTRODUCTION: Accounting and corporate governance scandals have been a growing problem in the recent years. Many believe that the blame for those scandals should be borne on two groups of people. Those responsible for managing a company and those whose duty is to provide assurance on the accounts prepared by the directors (auditors), both of whom failed to perform their jobs adequately...
Words: 12288 - Pages: 50
...UNIVERSITY OF DHAKA CORPORATE GOVERNANCE PRACTICE OF BRITISH AMERICAN TOBACCO, BANGLADESH LTD. JULY’ 2012 NAHID RIJWAN ID# 3-09-17-033 University of Dhaka Department of Management Studies MBA (Evening Program) Summer, 2012 Term Paper Course Title Course code Corporate Governance & Diplomacy EM 557 Course Teacher Md. Mesbah Uddin Topic Term Paper: Corporate Governance Practice of British American Tobacco, Bangladesh Ltd. 29- 07- 2012 Date Submitted by Name Nahid Rijwan Roll 3-09-17-033 CONTENTS Topic CHAPTER – 1 About British American Tobacco Bangladesh Business Principles of BAT, Bangladesh Standards of Business Conduct of BAT, Bangladesh: CHAPTER – 2 Corporate Governance Statement Board of Directors of BAT Bangladesh and Their Roles Relationship with Shareholders Accountability and Audit Compliance with Legal Requirements Employees Standards of Business Conduct CHAPTER -3 Corporate Social Responsibility Statement Probaho Socially Responsible Tobacco Production (SRTP) Deepto Afforestation CHAPTER - 4 Auditor’s Report to The Shareholders 16 12 12 13 14 15 6 7 9 10 10 10 11 1 2 3 Page CHAPTER - 5 Comparative Analysis of Bat Bangladesh’s Corporate Governance Compliance Status of compliance with the Provisions Denoted in the Code of Corporate Governance for Bangladesh, March 2004 Status of compliance with the Conditions Imposed by the Securities & Exchange Commission's Notification 21 19 18 REFERENCES 23 ANNEXURE - I 24 ...
Words: 13287 - Pages: 54
