The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron The tale of Enron is a story of human weakness, of hubris and greed and rampant self-delusion; of ambition run amok; of a grand experiment in the deregulated world; of a business model that didn’t work; and of smart people who believed their next gamble would cover their last disaster—and who couldn’t admit they were wrong.1 Once one of the country’s foremost companies in regards to earnings, innovation, and reputation
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Professional ethics are a set of rules that concern the rights and wrongs within a given profession. They are known as the professional code of ethics or conduct. Ethics can be both, written and unwritten. The written ethics are basically the morals within a profession. On the other hand, the unwritten ethics are more personal or so obvious that they should not have to be stated. When an individual begins a new profession, they are usually aware of the professional ethics that concern their particular
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CASE 1.6 NEXTCARD, INC. Jeremy Lent, a chief financial officer (CFO) with Providian Financial Corporation decided to apply the marketing tactics used by Providian to establish an internet based company to offer Internet users a faster way to obtain credit cards. Lent hired dozens of marketing researchers to analyze the “surfing habits of Internet users. With this information the marketing team developed an Internet-based advertising campaign to target internet users that frequently used
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section 150.) Source: SAS No. 95; SAS No. 98; SAS No. 102; SAS No. 105; SAS No. 113. Effective for audits of financial statements for periods beginning on or after December 15, 2001, unless otherwise indicated. .01 An independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. Auditing standards provide a measure of audit quality and the objectives to be achieved in an audit. Auditing procedures differ from auditing standards
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Section B of the Interpretation of Rule 101-1 states that independence is impaired when “a partner or professional employee of the firm, his or her immediate family, or any group of such persons acting together own[s] more than 5 percent of a client's outstanding equity securities or other ownership interests” (ET 101.02). The Code of Conduct further defines an immediate family member as “a spouse, spousal equivalent, or dependent (whether or not related)” (ET 92.13). As far as issues of independence
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Belief in inherent morality – Members believe in the rightness of their cause and therefore ignore the ethical or moral consequences of their decisions."(Irving) These symptoms were presented throughout the case. For example, Gregg Ritchie a tax professional at the firm concludes "the rewards of a successful
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several topics within a group does not imply equal importance or weight will be given to these groups or topics on an examination. Auditing and Attestation (AUD) The Auditing and Attestation section tests knowledge and understanding of the following professional standards: Auditing standards promulgated in the United States of America (related to audits of an “Issuer” (a public company), a “Nonissuer” (an entity that is not a public company),
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International Financial Reporting Standards (IFRS) An AICPA Backgrounder 1 Table of Contents Get Ready for IFRS ........................................................................................ 2 Worldwide Momentum ................................................................................. 2 SEC Leadership in International Effort .......................................................... 3 The SEC Work Plan.................................................................
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1. A. The standard unqualified report is comprised of the report title, audit report address, introductory paragraph, scope paragraph, opinion paragraph, name of CPA firm, and the last day of field work. Auditing standards requires the report to have a title, as well as having the word independent in the title. The requirement to have the word independent within the title explains to users that the auditor is independent of the company. In terms of the audit report address, the report is generally
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and objectivity. AICPA Code of Professional Conduct ET Section 101.02 Rule 101- 1 Independence: This section outlines specific relationships that impair auditor independence. There is a provision for other considerations that defines the reasonable person test for determining if there is a threat to independence. 1. 1. Professional skepticism is an attitude of a questioning mind and a critical assessment of evidence. 2. Will exercised professional skepticism in a number
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