Suchergebnisse

• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 12: Enron (2001)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Enron stock (October 17). Senior management, however, sold nearly USD 1 billion worth of company shares throughout the year. - The SEC opened inquiries… …busi- ness judgment of Enron’s management in setting up these structures for the com- pany’s benefit. One of the main questions asked in the wake of… …destruction of the documents, but announced that it was suspending its records management policy, which allowed for disposal of unnecessary records… …auditors on technical accounting questions; nor was it in a position to evaluate the validity of top management representations. The audit committee did… …rewarded. (For example, from 1999 through 2001, two SPEs called “the LJM partnerships” paid Andrew Fastow more than USD 30 mil- lion in management fees –… …, Enron’s management was heavily compensated using stock option awards. But these stock compensation programs only motivated Enron’s managers to pump…

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  Case 13: WorldCom (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Code. 17,000 em- ployees were made redundant around the globe, whilst senior management worked out a restructuring plan. Shareholders lost some USD 3… …costs. From 1999 to 2001, they accounted for more than half of the company’s total expenses. As a result, WorldCom management and outside analysts paid… …improve results when management felt this was needed. Governance failures at WorldCom The setting in which the fraud occurred was marked by serious… …senior management was final and not be challenged. Most of WorldCom’s people did not know that the fraud was occurring. Rather, it occurred as a result of… …fraud was not confined to Ebbers, Sullivan and Myers. Others at WorldCom either knew or suspected that senior management was engaged in improper… …over- sight of management activity – closed the finance and accounting department located in the company’s Clinton, Mississippi headquarters, where…

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  Case 14: Dynegy (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …downplayed the importance of the SEC investigation. The company said that “a new management focus was needed” and that the trades being investigated were…
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  Case 15: Xerox (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …management. In May 2000, Xerox made a public announcement that it had discovered accounting irregularities associated with its Mexican operations. CEO… …recogni- tion”. But when the engagement partner challenged Xerox’s non-GAAP accounting practices, the company’s senior management told the audit firm that… …itself as a business increasing its earnings every quarter and meeting its competitive challenges. Senior management repeat- edly told investors that… …they were routinely presenting an inaccurate picture of Xerox’s financial per- formance. In November 1999, CFO Barry Romeril told senior management that… …against CEO Paul Allaire, CFO Barry Romeril and four other Xerox executives. The SEC noted that compensation of Xerox senior management depended… …. “Xerox today is a stronger company with a new management team that has taken all the right steps to turn our business around.” Eventually, the SEC… …concerns about the company’s accounting to its senior management. KPMG was “intimately familiar” with the accounting used by Xerox, the SEC said. The audit… …, 2005 Xerox: The Downfall – The Inside Story of the Management Fiasco at Xerox, Business Week Online, March 5…

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  Case 16: Tyco International (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …were “exceptional” and that Tyco’s management “prided itself on having a sharp focus with creating shareholder value”. Similarly, Swartz regularly… …to West Windsor, New Jersey, and installing new directors and management. The company filed its own separate lawsuit against Kozlowski, seeking the…
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  Case 18: Qwest Communications International (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Wall Street that it used any means necessary to meet its “outrageously optimistic revenue projec- tions”. “Qwest senior management created a… …employees inter- nally referred to such transactions as “one hit wonders”). When senior management realized that it could not meet the projected growth… …sales increased each quarter as senior management continued to project significant year-over-year and quarter-over-quarter revenue growth. In 2001, in… …that the company “reset expectations and put the best face on to Wall Street that we can”. However, senior management rejected a reset…

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  Case 19: Adelphia Communications (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …of all the cases. It should become a show-and-tell in all busi- ness schools as the antithesis of public company management and stewardship.” In… …resigned from management positions and the Adelphia board of directors, after a series of questionable transactions between the family and the company had… …the Rigas entities participated jointly in a cash management system operated by Adelphia (the “CMS”). This resulted in the commingling of funds… …centralized cash management system (which pooled cash from Adelphia and the Rigas entities) to their personal advantage. – Many Rigas entities were so…

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  Case 20: AOL Time Warner (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …management of AOL Europe; for example, it caused its own designated directors and steering committee members to act in accordance with AOL’s directions. How-… …senior management now focused on making the company a more efficient operation devoted solely to information and entertainment. References…
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  Case 21: HealthSouth (2003)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …of Wall Street’s expectations, Scrushy would tell management to “fix it” by recording false earnings to make up the shortfall. (The conspirators also… …Accounting Fraud in U.S. Companies 143 HealthSouth worked to restore credibility under new management. Bob May, the new chairman, said that the… …company’s board “remained appalled by the multi- billion dollar fraud that took place under Mr. Scrushy’s management and the envi- ronment under which such… …HealthSouth executives charged with accounting fraud, Healthcare Financial Management, May 2003 Troubled HealthSouth Faces Medicare Fraud Investigation…

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  Case 22: Symbol Technologies (2004)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …2003, and involved nearly the entire management team, including the CEO, CFO and senior vice presidents for operations, sales and finance. “This is a…