Arthur Andersen (A): The Waste Management Crisis

2017 ◽  
pp. 1-11
Author(s):  
Daniel Diermeier ◽  
Robert J. Crawford ◽  
Charlotte Snyder
Keyword(s):  
Waste Management ◽  
Crisis Management ◽  
Corporate Culture ◽  
Balance Sheet ◽  
Securities And Exchange Commission ◽  
Great Success ◽  
Accounting Firm ◽  
Regulatory Decision ◽  
The Impact ◽  
Arthur Andersen

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

Arthur Andersen (B): From Waste Management to Enron

2017 ◽  
pp. 1-6
Author(s):  
Daniel Diermeier ◽  
Robert J. Crawford ◽  
Charlotte Snyder
Keyword(s):  
Waste Management ◽  
Crisis Management ◽  
Corporate Culture ◽  
Balance Sheet ◽  
Securities And Exchange Commission ◽  
Great Success ◽  
Accounting Firm ◽  
Regulatory Decision ◽  
The Impact ◽  
Arthur Andersen

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

Arthur Andersen (C): The Collapse of Arthur Andersen

2017 ◽  
pp. 1-10 ◽  
Author(s):  
Daniel Diermeier ◽  
Robert J. Crawford ◽  
Charlotte Snyder
Keyword(s):  
Crisis Management ◽  
Corporate Culture ◽  
Balance Sheet ◽  
Securities And Exchange Commission ◽  
Great Success ◽  
Accounting Firm ◽  
Regulatory Decision ◽  
News Reports ◽  
The Impact ◽  
Arthur Andersen

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

The Spillover Effect of Audit Firm Office Acquisition on the Audit Quality of the Existing Client Base

2021 ◽  
Author(s):  
Aleksandra B. Zimmerman ◽  
Amirali M. Chaghervand ◽  
R. Drew Sellers ◽  
Timothy J. Fogarty
Keyword(s):  
Audit Quality ◽  
Spillover Effect ◽  
Accounting Firm ◽  
Audit Firm ◽  
Audit Firms ◽  
Local Practices ◽  
The Impact ◽  
Arthur Andersen ◽  
Robust Evidence

This study investigates accounting firm office acquisitions. It explores whether office acquisitions affect post-acquisition office audit quality, particularly whether there is a spillover effect on the existing client base of the acquiring office. We capitalize on a unique circumstance: the 2002 acquisition of Arthur Andersen (Andersen) offices by other audit firms. This setting involves a set of offices in each of the remaining large international audit firms that acquired entire Andersen local practices and a set of offices that did not acquire Andersen practices. Using a within-audit firm matched sample and a difference-in-differences research design, we find robust evidence of higher audit quality post-acquisition among the audits of existing clients of the acquiring offices. These findings extend the literature on office audit quality and provide initial evidence of the impact of audit firm office acquisitions on the existing client base.

Corporate mindset, denial and resistance to change in health leaders

2014 ◽  
Vol 27 (2) ◽  
pp. 126-134 ◽  
Author(s):  
Deon V. Canyon
Keyword(s):  
Crisis Management ◽  
Corporate Culture ◽  
Resistance To Change ◽  
Aged Care ◽  
Management Program ◽  
Major Barrier ◽  
Content Type ◽  
Passive Resistance ◽  
Mind Set ◽  
The Impact

Purpose – Corporate culture is a product of managerial mindset and it consists of obscured, undisclosed and unconditionally accepted assumptions that underlie corporate behaviour. This study seeks to investigate the extent of corporate mindset since it is a causal factor in crises. Design/methodology/approach – Data were obtained by questionnaire from decision-making executives in hospitals, medical centres, aged care, pharmacies, dental clinics and practices in physiotherapy, chiropractic and podiatry. Findings – Organizations were judged to be in a state of medium disavowal concerning their belief that the impact of any crisis would be small. Around two thirds of participants indicated that the general mind-set of organizations contributes to effective crisis management, and that a welcoming attitude would prevail in the event of the implementation of a organization-wide, systems-wide, crisis management program. With regard to denial mechanisms or beliefs that hinder effective crisis management, two-thirds indicated inactive/passive resistance and one-third indicated active/aggressive resistance. The reasons for resistance were apathy, anti-change, and concern about cost. Originality/value – Cultural opposition to crisis preparedness varies significantly between organizations and poses a major barrier to effective crisis management. This study empowers health leaders by identifying several mindset changes that are required to create crisis-resilient health organisations.

DAMPAK PENGELOLAAN SAMPAH PADA KESEHATAN MASYARAKAT DI TPA

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Emilda Emilda
Keyword(s):  
Public Health ◽  
Hand Hygiene ◽  
Waste Management ◽  
Qualitative Data ◽  
Water Storage ◽  
Health Impact ◽  
Clean Water ◽  
The People ◽  
Clean Environment ◽  
The Impact

The limitations of waste management in the Cipayung Landfill (TPA) causing a buildup of garbage up to more than 30 meters. This condition has a health impact on people in Cipayung Village. This study aims to analyze the impact of waste management at Cipayung Landfill on public health in Cipayung Village, Depok City. The research is descriptive qualitative. Data obtained by purposive sampling. Data was collected by interviews, observation and documentation. Based on interviews with 30 respondents, it was found that the most common diseases were diarrhea, then other types of stomach ailments, subsequent itching on the skin and coughing. This is presumably because the environmental conditions in the form of unhealthy air and water and clean and healthy living behaviors (PHBS) have not become the habit of the people. The results indicated that there were no respondents who had implemented all of these criteria. In general respondents have implemented  3 criteria, namely maintaining hair hygiene, maintaining skin cleanliness, and maintaining hand hygiene. While maintaining clean water storage is the most often overlooked behavior. To minimize this health impact, improvements in waste management in Cipayung landfill are needed along with continuous socialization and education to develop PHBS habits and the importance of maintaining a clean environment.

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

THE MAIN DIRECTIONS OF ECONOMIC SUPPORT OF THE REGIONAL SECURITY SYSTEM OF THE POPULATION

2020 ◽  
Vol 1 (11) ◽  
pp. 133-140
Author(s):  
E. V. DMITRIEVA ◽  
Keyword(s):  
Crisis Management ◽  
Security System ◽  
Regional Security ◽  
Economic Losses ◽  
Economic Damage ◽  
Economic Activities ◽  
The Sustainable Development ◽  
Economic Support ◽  
The Impact ◽  
Crisis Situations

The article considers topical issues of economic support for the development of the regional security system of the population against various risks. The dependence of the impact of the scale of crisis situations on economic activities in the constituent entities of the Russian Federation, which become a serious barrier to the sustainable development of the regions of the country, was investigated. The increasing importance of risks of economic losses from accidents and disasters at potentially dangerous facilities as a result of the complex influence of natural, manmade and fire factors has been established. An analysis was carried out and proposals were developed to implement the key tasks of the state in the field of ensuring the protection of the population and territories of the country from disasters in order to ensure the stability of the economy. The organizational structure, division of tasks and functions between officials, crisis management structures and responding units were analyzed, taking into account the reduction in current financial costs. On the basis of a study of the peculiarities of the regions of the country, recommendations were formed to fulfill the necessary tasks by the anti-crisis management bodies in the field of reducing economic damage on the basis of preventing crisis situations and ensuring fire safety. It is proposed to organize the practical application of a complex automated security system based on modern developments with the application of improving the qualities and efficiency of anti-crisis management processes in order to increase economic efficiency. Initial data were formed to reduce potential threats of a natural, man-made, fire and other nature in the regions using financial and economic mechanisms. It is proposed to implement a set of priority measures to further improve and increase the potential of economic support for the anti-crisis management system. The materials of the article can be used in planning the main directions of the development of the regional population security system and the implementation of socio-economic development programs.

The Relation between Accounting Information in Debt Covenants and Operating Leases

2015 ◽  
Vol 29 (4) ◽  
pp. 969-996 ◽  
Author(s):  
Daniel Gyung H. Paik ◽  
Joyce A. van der Laan Smith ◽  
Brandon Byunghwan Lee ◽  
Sung Wook Yoon
Keyword(s):  
Balance Sheet ◽  
Accounting Information ◽  
Debt Covenants ◽  
Debt Contracts ◽  
Debt Contracting ◽  
Income Statement ◽  
Operating Leases ◽  
The Impact ◽  
Accounting Ratios ◽  
Lease Accounting

SYNOPSIS Proposed changes by the FASB and the IASB to lease accounting standards will substantially change the accounting for operating leases by requiring the capitalization of future lease payments. We consider the impact of these changes on firms' debt covenants by examining the frequency of income-statement- versus balance-sheet-based accounting ratios in debt covenants of firms in high and low Off Balance Sheet (OBS) lease industries. Based on debt contracts from the 1996–2009 period, our results provide evidence that lenders focus on balance sheet (income statement) ratios in designing debt covenants for borrowers in low (high) OBS lease industries. Further, the use of balance-sheet- (income-statement-) based covenants falls (rises) faster in high OBS lease industries than in low OBS lease industries as the use of OBS leasing increases. This evidence indicates that OBS operating leases influence lenders' use of accounting information in covenants, suggesting that creditors consider the impact of OBS leases when structuring debt agreements. These results also suggest that the proposed capitalization of OBS leases may not result in firms violating loan covenants but will make the balance sheet a more complete source of information for debt contracting by removing the need for constructive capitalization of OBS leases.

scholarly journals Crisis Management in Higher Education in the Time of Covid-19: The Case of Actor Training

2021 ◽  
Vol 11 (3) ◽  
pp. 132
Author(s):  
Anna McNamara
Keyword(s):  
Higher Education ◽  
Crisis Management ◽  
High Frequency ◽  
High Reliability ◽  
Actor Training ◽  
Management Actions ◽  
The Usa ◽  
The Uk ◽  
The Impact ◽  
High Frequency Words

The impact of Covid-19 placed Higher Education leadership in a state of crisis management, where decision making had to be swift and impactful. This research draws on ethea of mindfulness, actor training techniques, referencing high-reliability organisations (HRO). Interviews conducted by the author with three leaders of actor training conservatoires in Higher Education institutions in Australia, the UK and the USA reflect on crisis management actions taken in response to the impact of Covid-19 on their sector, from which high-frequency words are identified and grouped thematically. Reflecting on these high-frequency words and the thematic grouping, a model of mindful leadership is proposed as a positive tool that may enable those in leadership to recognise and respond efficiently to wider structural frailties within Higher Education, with reference to the capacity of leaders to operate with increased mindfulness, enabling a more resilient organisation that unlocks the locus of control.

scholarly journals 398 Theatre Waste Management and the Impact of COVID-19

2021 ◽  
Vol 108 (Supplement_2) ◽  
Author(s):  
C Luney ◽  
C Little
Keyword(s):  
Environmental Impact ◽  
Waste Management ◽  
Management Practice ◽  
Surgical Case ◽  
Widespread Adoption ◽  
Period Data ◽  
The Mean ◽  
Contaminated Waste ◽  
The Impact ◽  
Waste Management Practice

Abstract Introduction Audit of waste management in an elective orthopaedic complex was interrupted due Covid-19 pandemic. We investigated the impact of the enforced changes on theatre waste due to Covid-19. Method Over a 1week period data on waste bag availability and number of bags of each category of waste per surgical case in an elective theatre complex was collated; this was compared to waste generated during Covid-19 pandemic. Results Prior to Covid-19 only clinical waste bins were available in many non-dominant clinical areas providing evidence of inappropriate routine disposal of domestic/recyclable waste. Pre-Covid-19 a mean of 6waste bags were used per surgical case (3.7yellow clinical bags, 1.3black domestic bags, 0.4clear recycling bags), with Covid-19 changes to waste management practice the mean number of waste bags used per case increased to 11 (9 orange contaminated bags, 0.5black, 0.3clear bags). Conclusions Clinical waste management has a significant economic and environmental impact. Covid-19 has led to nearly all waste being deemed to be contaminated and so requiring incineration, with increased volumes of waste generated per case through widespread adoption of PPE. This has increased cost and reduced the ability to recycle non-contaminated waste.

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