Suchergebnisse

• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 12: Enron (2001)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in U.S. Companies 80 Case 12: Enron (2001) Perhaps more than any other company facing scandal in recent years, Enron stands… …out as the poster child for corporate fraud. The crimes of Enron’s top executives resonated the most in the public mind, and the company’s name has… …become synonymous with corporate malfeasance. However, compared to other accounting frauds, the Enron fraud was very complicated; it involved many… …reports. They didn’t have to lie. All they had to do was to obfuscate it with sheer complexity – although they lied, too.” The impact of the fraud was… …since October 1929”. Besides, the fraud ushered in a wave of prosecutions against white-collar crime at the highest levels of American business, and it… …U.S. Accounting Fraud in U.S. Companies 81 borders; “Enron International”, a wholly owned subsidiary, was created to manage energy assets… …resigned, citing “personal reasons” (August 14); he was replaced once again by Kenneth Lay. Accounting Fraud in U.S. Companies 82 - Sherron Watkins… …Enron stock (October 17). Senior management, however, sold nearly USD 1 billion worth of company shares throughout the year. - The SEC opened inquiries… …transactions that involved setting up complex special purpose entities. Accounting Fraud in U.S. Companies 83 Enron’s financial reporting (I)… …Fraud in U.S. Companies 84 forward markets in the services Enron promised to provide; extremely optimistic numbers were simply conjured up out of…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 30: Lernout & Hauspie Speech Products (Belgium, 2000)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 180 Case 30: Lernout & Hauspie Speech Products (Belgium, 2000) In 2007, ten years after Jo Lernout and… …hundreds of disgruntled investors who lined up for the opening of the nation’s biggest fraud trial, seeking to get their money back. “Lernout & Hauspie… …of sophistication of the fraud and the amount of imagination that went into it”. Speaking at a news conference in Brussels, he said the fraud… …, revenue quadrupled to Accounting Fraud in European Companies 181 USD 31 million. In 1998, revenue mushroomed to USD 212 million, more than… …½ years because of “errors and irregularities”, a term that in accounting literature often signifies fraud. Jo Lernout and Pol Hauspie, the… …, the company voluntarily de-listed from the EASDAQ. In April 2001, L&H announced that a new probe of its operations found massive fraud. The probe… …, commissioned by L&H’s new management and carried out by PricewaterhouseCoopers, found, e.g., that 70% of the USD 160 million in sales booked by the Korean unit… …of undisclosed and deceptive transactions to inflate reported revenue and, consequently, the stock price. Accounting Fraud in European Companies… …false impression of exponential growth. The LDCs had Accounting Fraud in European Companies 183 few, if any, employees, and were dependent upon… …of fraud. The revelations eventually led to an investigation by the American watchdog SEC. The Flanders Language Valley Fund N.V. Over the…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 37: Siemens (Germany, 2006)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 218 Case 37: Siemens (Germany, 2006) For over 160 years, Siemens has stood for technological… …and I really mean zero toler- ance,” CEO Klaus Kleinfeld said in a statement. Accounting Fraud in European Companies 219 The Munich… …public prosecutor initially believed that a small criminal gang within Siemens was behind the fraud scandal, with money being channelled from the com-… …. Accounting Fraud in European Companies 220 The scope of the investigations was unprecedented, authorities said. German and American investigators… …collected more than 100 million documents and conducted more than 1,700 fraud interviews in 34 countries; Debevoise & Plimpton racked up 1.5 million… …small central management enthroned above them was mainly responsible for company-wide issues. The division heads learned to value this new-found free-… …conceal the identities of the officials who authorized such payments. At the same time, Siemens central management tight- ened its anti-corruption… …guidelines – at least on paper. According to court docu- Accounting Fraud in European Companies 221 ments, Siemens just created a “paper program”, a… …discussed how to better disguise its illegal payments, while making sure that the employees didn’t pocket the money. Accounting Fraud in European… …railway lines. In a separate investigation, a member of Siemens’s central management, Johannes Feldmayer, was arrested by prosecutors on charges…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 31: Bankgesellschaft Berlin (Germany, 2001)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 186 Case 31: Bankgesellschaft Berlin (Germany, 2001) It is a spectacular tale of incompetence… …, nepotism, corruption and accounting fraud that pushed one of Germany’s biggest banks to the brink of collapse. The news magazine Der Spiegel spoke of the… …million) was also expressly dispensed with. Accounting Fraud in European Companies 187 Later, investigations revealed that Berlin Hyp chairman… …estate funds, the debts of BGB assumed ever greater proportions. In late 2000, BGB management tried to conceal the looming bankruptcy by the fictitious… …said that it had been obliged to set aside over EUR 2 billion in provisions. About half the provisions were to cover Accounting Fraud in European… …all, top management at BGB didn’t have a complete picture of what was going on at Berlin Hyp, the mortgage-lending subsidiary. As a consequence… …, management was not able to uncover the full extent of the bank’s risk exposure or to push through the necessary changes. In November 2001, the BGB board… …BGB’s risk management was insufficient and that its risk provisions had to be revised upwards. But he had sounded the alarm in vain. BGB asked him to… …in damages from BDO. Accounting Fraud in European Companies 189 The Walther report could have stopped the shenanigans years ago. But BDO… …learned from the BGB debacle was that politicians and bank risk management don’t mix well. The new BGB chairman, Hans-Joerg Vetter, put forward a plan…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 16: Tyco International (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in U.S. Companies 112 Case 16: Tyco International (2002) Under the leadership of CEO Dennis Kozlowski, Tyco International… …. Nevertheless, taken as a group, these 700 deals certainly had a material Accounting Fraud in U.S. Companies 113 impact on Tyco’s results. As a… …and employees with outsized compensation. Accounting Fraud in U.S. Companies 114 The SEC filed a separate but related civil lawsuit… …, charging Kozlowski, Swartz and Tyco general counsel Mark Belnick with grand larceny, conspiracy, corruption, securities fraud and falsifying business… …. Thus, this executive compensation was never disclosed. Accounting Fraud in U.S. Companies 115 In 2000, Kozlowski and Swartz engineered… …were “exceptional” and that Tyco’s management “prided itself on having a sharp focus with creating shareholder value”. Similarly, Swartz regularly… …Swartz indicated that they would appeal Accounting Fraud in U.S. Companies 116 the verdict. The pair had testified that they were unaware of… …securi- ties fraud, but was not sentenced to prison. Before the sentencing, Kozlowski had asked the judge to be as “lenient as possible” and to… …. district attorney told the judge that Kozlowski should not be shown any leniency: “He stole. He committed fraud. He committed perjury. And he engaged in a… …that could have uncovered the fraud. However, sources close to the Tyco investigation suggested that Kozlowski (who had trained as an auditor himself)…

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• eBook-Kapitel aus dem Buch Global Management Challenges for Internal Auditors

  International Professional Practices Framework – Overview of the current guidance of the Institute of Internal Auditors

  T. Flemming Ruud, Philipp Friebe, Daniela Schmitz, Shqiponja Isufi

  …different legislative and regulatory initiatives aimed at improving the Governance, Risk Management and Internal Control of an organization. The PPF has… …systematic, disciplined approach to evaluate and improve the effectiveness of Risk Management, Control, and Governance processes. Figure 2: Definition of… …perform audit engagements. In order to effectively help the board and the management, it is necessary that the Internal Auditors behave in a professional… …example, the Position Paper "The Role of Internal Auditing in Enterprise-Wide Risk Management" describes the role of Internal Audit within the scope of… …scope of the Internal Audit includes the systematic evaluation of the adequacy and the effectiveness of the Governance, Risk Management and Internal… …(previously Risk Man- agement). Standard 2120 relates to Risk Management (previously Internal Control), while Standard 2130 describes the tasks of Internal… …Technology Controls Controls that support business management and governance as well as provide general and technical controls over information technology… …Code of Ethics and the Standards with the senior management and the board. Standard 1111 demands that the Chief Audit Executive communi- cates and… …the strate- gies and objectives of the organization. According to Standard 2120.A2, when evaluating the Risk Management processes the Internal Audit… …activity must take into account the potential for the occurrence of fraud and how the organization manages fraud risks. Furthermore, Standard 2120.C3 now…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  A Practice Aid for Company Executives: The Ethics Barometer

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …management team have a clear picture of the ethi- cal issues occurring at all levels of the organization. But to develop a sophisticated understanding of an… …agree, 2 = disagree, 1 = strongly disagree). A. Leadership/“Tone at the Top” A.1 In my opinion, the management team sets a good example in… …management team communicates the importance of ethics and integ- rity clearly, convincingly and consistently. The CEO and the other senior executives set the… …. A.12 It is easy for me to comply with the company’s standards of conduct because there is a strong level of commitment from top management and… …: everyone treats one another with respect; there is a relationship of trust between management and employees. B.6 In my immediate working environment… …violation of the company’s standards of conduct to local management, I believe my report would be handled confidentially and I would be protected from… …of em- ployees through speeches from senior management, internal newsletters, in-house magazines and training sessions. C.15 The company’s… …organizations etc.). C.16 All employees have attended fraud awareness trainings. Appendix: Practice Aids 294 C.17 The average duration of those… …fraud awareness sessions is adequate. C.18 The company has established its compliance policy by means of a long- term integrated plan. It regularly… …: Practice Aids 295 The management team can use the results of the ethics barometer to develop a com- prehensive integrity profile for the organization…

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• eBook-Kapitel aus dem Buch Global Management Challenges for Internal Auditors

  Audit Marketing

  Dr. Hannes Schuh

  …. in particular concerning o quantitative and qualitative audit methods o internal control systems o risk management o corporate governance o fraud… …Unit (at management events) – transparent information on Internal Audit Unit (in the intranet) – informing employees of the audited organizational unit… …cept, the systematic preparation for management tasks transparently and where pos- sible to support these with examples. It also makes sense to show… …sense (the audit is per- formed by IA on behalf of top management), the audit is in a supply-oligopoly posi- tion because the Court of Auditors to some… …organization. 3.3 Market Management Task Based on the marketing definition of Kotler, the marketing management tasks in- clude the targeted selection… …, information) and the distribution channel (reporting processes, information media, etc.). The marketing management task can therefore be defined for the… …: Audit Advice Information Internal customers Top management level Customer and report addressee Overall view of the organization (Audit… …concerning risk management systems, internal control systems condensed view of systems and their potential; audit system Co n te n t o f i n… …, contribution towards the organization being fit for the future Improvement po- tential concerning corporate risk management, corporate govern- ance… …. – Internal Audit Unit’s technical knowledge covers the whole area of the audit universe. – IA is oriented towards the strategy of management, adds…

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• eBook-Kapitel aus dem Buch Erfolgreiches Risikomanagement mit COSO ERM

  Information und Kommunikation

  Christian Brünger

  …zent- ral für die Unternehmensplanung, Budgetierung, Preisgestaltung, Bewertung von Kooperationen und viele andere Aktivitäten, die das Management… …Interner Fraud Externer Fraud Schäden an Firmenvermögen Unterbrechung des Geschäftsbetriebs − + 0 + Interne und Externe Fraud-Vorfälle… …Jan Zusammenfassung Detaillierte Einzelwerte Feb Mai Mär Apr Jun Jul Aug Nov Sep Okt Dez 1 2 Externer Fraud Interner Fraud 1 1 2 2 1… …Bewertung der Aspekte „Interner Fraud“ und „Externer Fraud“. Diese Aspekte stellen wiederum Faktoren im unternehmensweiten „operationellen Risiko“ dar. In…

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• eBook-Kapitel aus dem Buch Global Management Challenges for Internal Auditors

  The Financial Sector: Risks, Controls and Assurance after the Financial Crisis

  Daniel Nelson

  …management failures. 1 The Roots of the Crisis The macroeconomic aspects tell us the financial crisis was preceded by the culmi- nation of a long-lasting… …management. Nelson 94 For what concerns the underlying policies causes, three examples can be made. Ba- sically, the regulatory and supervisory… …situation. Lastly, risk management. One aspect is that risk management or risk mitigation has been viewed as more of a nuisance, more a need to adhere… …area in an entity. Nelson 96 It has also been reported that enterprise risk management (ERM) and the finance complex did not have adequate… …lesson-learned here is obvious: internal audit should review the risk management governance and op- erational arrangements, to ensure that there are no such gaps… …requirement compared to the 2006 charter. The second change in the 2009 charter is the new wording added to the risk management section which indicates that… …the audit committee is not the only body responsible for oversight of AIG’s risk assessment and management. The 2009 charter also goes on to state… …management. 5 Four more steps In closing, I want to suggest the following four specific areas to be considered for audit work by internal audit. As… …mentioned, risk management will certainly be an area to focus internal audit’s attention on; admittedly, the current crisis involved both external risks and… …priorities of the or- ganization. Some might say that “back to basics” should also include an increased emphasis on testing and focus on fraud weaknesses that…

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