Accounting Fraud

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Accounting Fraud

Any act or attempt to falsify an accounting statement for financial gain. A clear example of accounting fraud is the act of deliberately overpricing a company's assets in order to drive up its share price. Another example is filing bankruptcy to avoid debt, rather than because of financial hardship. One of the biggest accounting frauds in history occurred during the Enron scandal in 2001.
References in periodicals archive ?
Former Chairman and CEO Michael Pearson resigned amid pricing and accounting scandals, leaving the company $31 billion in debt.<br />In 2015 the company found itself under fire when it was revealed it raised prices for heart and diabetes drugs more than 500 percent.
Such a casebook was needed even before the corporate governance and accounting scandals at Enron, WorldCom, and numerous other companies, they say, but the scandals and their fallout have generated considerably more student interest in securities litigation and enforcement, partly because students recognize its growing importance as an area of practice.
It's a real benefit for members and potential members, and this could not be clearer than focusing on the role FEI played at the time the accounting scandals involving Enron Corp.
Tokyo stocks finished lower Tuesday for the first time in seven trading days, hit by accounting scandals involving major listed firms and selling after recent rapid gains.
The financial meltdown in the telecom sector and other accounting scandals are then considered, before the volume concludes with a look at the market recovery that followed the scandals and recommendations of alternatives to the present system of financial disclosure.
Ironically, though, these same accounting scandals have increased interest in accounting as a profession, resulting in an increase in accounting majors.
As a response to the spectacular corporate accounting scandals kicked off by the 2001 collapse of energy trader Enron Corp., Sarbanes-Oxley lays down some firm rules about how corporations in the United States should be governed, who's responsible for a company's financial health and what boards of directors need to do to protect shareholders' interests.
He theorizes that the accounting scandals that led to Sarbanes-Oxley also made a difference.
The ruling is called a setback for the Bush administration, which tackled the former Big 5 accounting firm first in its efforts to prosecute white collar criminals following accounting scandals at several major corporations.
Furthermore, when asked whether CPAs and the accounting profession have taken steps to fix the problems that had led to past accounting scandals, fully 80% of business decisions and 70% of executives said "yes." While just 52% of investors said "yes" to that question, 71% of investors responding to the survey admitted they are not familiar with the Sarbanes-Oxley Act.
Recent corporate accounting scandals and the resultant outcry for transparency and honesty in reporting have given rise to two disparate yet logical outcomes.
WITH THE RECENT AND VERY PUBLIC RESIGNATION OF TWO TIAA-CREF trustees for tripping over federal auditor independence statutes, the corporate accounting scandals have officially crossed into higher education.

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