Do Succeeding Auditors to Arthur Andersen After the Financial Scandals Reports More Conservatively?

2005 ◽  
Author(s):  
Kam Wah Lai
Keyword(s):  
Financial Scandals ◽  
Arthur Andersen

Conflict and Financial Scandal on History, Culture, and Politic

2018 ◽  
Vol 9 (03) ◽  
pp. 20628-20638
Author(s):  
Anik Yuesti ◽  
I Made Dwi Adnyana
Keyword(s):  
Human Rights ◽  
Church Leaders ◽  
Christian Church ◽  
Spiritual World ◽  
Political Interests ◽  
The World ◽  
Financial Scandals ◽  
Financial Transparency ◽  
The Church ◽  
Transparency And Accountability

One of the things that are often highlighted in the world of spirituality is a matter of sexual scandal. But lately, the focus of the spiritual world is financial transparency and accountability. Financial scandals began to arise in the Church, as was the case in the Protestant Christian Church of Bukti Doa Nusa Dua Congregation in Bali. The scandal involved clergy and even some church leaders. This study aims to describe how the conflict occurred because of financial scandals in the Church. The method used in this study is the Ontic dialectic. Based on this research, the conflict in the Bukit Doa Church is a conflict caused by an internal financial scandal. The scandal resulted in fairly widespread conflict in the various lines of the organization. It led to the issuance of the Dismissal Decrees of the church pastor and also one of the members of Financial Supervisory Council. This conflict has also resulted in the leadership of the church had violated human rights. Source of conflict is not resolved in a fair, but more concerned with political interests and groups. Thus, the source of the problem is still attached to its original place.

THE END OF BETTERMENT ACCOUNTING: A STUDY OF THE ECONOMIC, PROFESSIONAL, AND REGULATORY FACTORS THAT FOSTERED STANDARDS CONVERGENCE IN THE U.S. RAILROAD INDUSTRY, 1955–1983

2007 ◽  
Vol 34 (1) ◽  
pp. 25-55 ◽  
Author(s):  
Jan R. Heier ◽  
A. Lee Gurley
Keyword(s):  
21St Century ◽  
Accounting Standards ◽  
Interstate Commerce Commission ◽  
Early 21St Century ◽  
Railroad Industry ◽  
Tax Legislation ◽  
Industry Standards ◽  
Securities Industry ◽  
Arthur Andersen ◽  
The U.S

On January 26, 1983, the Interstate Commerce Commission (ICC) announced that it would require all railroads under its regulatory jurisdiction to change from Retirement-Replacement-Betterment (RRB) accounting, to a more theoretically sound depreciation accounting for matching revenues and expenses. The change was needed because RRB did not allow for the recapture of track investment, leaving the railroads with limited capital to replace aging track lines. Over the previous three decades, it had become painfully obvious to everyone that the industry's economic woes were the result of archaic accounting procedures that lacked harmony with the rest of American accounting standards, but the ICC was reluctant to change until new tax legislation in the early 1980s forced the issue. The decision was a culmination of a debate that started in the mid-1950s when Arthur Andersen, with the help of the securities industry, began an effort to harmonize railroad and industry standards using arguments that mirror those supporting the international accounting harmonization efforts of the early 21st century.

Auditor Tenure and the Timeliness of Misstatement Discovery

2017 ◽  
Vol 93 (2) ◽  
pp. 315-338 ◽  
Author(s):  
Zvi Singer ◽  
Jing Zhang
Keyword(s):  
Natural Experiment ◽  
Audit Quality ◽  
Client Engagement ◽  
Audit Firm ◽  
Auditor Tenure ◽  
Sarbanes Oxley ◽  
Auditor Change ◽  
Negative Effect ◽  
Extended Analysis ◽  
Arthur Andersen

ABSTRACT Using the timeliness of misstatement discovery as a proxy for audit quality, we examine the association between audit firm tenure and audit quality in a setting that alleviates the endogeneity problem endemic to this line of research. We find that longer audit firm tenure leads to less timely discovery and correction of misstatements, which is consistent with a negative effect of long auditor tenure on audit quality. In addition, using the non-voluntary auditor change following the demise of Arthur Andersen in 2002 as a natural experiment, we show that the misstatements of its former clients were discovered faster than those of comparable companies that retained their auditors throughout the misstatement. This finding speaks to the benefit of a fresh look by a new auditor. An extended analysis shows that longer auditor tenure also leads to misstatements of greater magnitudes, and that the Sarbanes-Oxley Act has mitigated, but not eliminated, the negative effect of long auditor tenure. Last, we show that the negative association between auditor tenure and timely discovery of misstatements is mainly present in the first ten years of an audit engagement. Our study has implications for regulators who continue to express concern regarding lengthy auditor-client engagement. JEL Classifications: K22; K23; L51; M41; M42; M48.

Negative accounting stereotype: Enron cartoons

2021 ◽  
Vol 26 (1) ◽  
pp. 35-60
Author(s):  
Michael Jones ◽  
Patricia Stanton
Keyword(s):  
United States ◽  
The United States ◽  
Accounting Scandals ◽  
Editorial Cartoons ◽  
Arthur Andersen

A sample of editorial cartoons published following the wave of accounting scandals in the United States culminating in the collapse of Enron and the demise of the auditors Arthur Andersen LLP was examined to explore the portrayal of accounting, accountants and auditors. The nature and importance of the cartoons was also investigated. While the examination revealed what cartoonists had to say about accounting, accountants and auditing, the purpose was to ascertain the stereotypes conveyed. The cartoonists working from established preconceptions of accounting and accountants redefined and reshaped accounting stereotypes. They replaced the dull but honest image with a negative one, the fraudulent accountant. However, the image of the male accountant survived. As social critics, the cartoonists focused on the consequences on employees and stockholders but neglected to address the consequences for business institutions.

Examining Financial Controls Practices Among Religious Non-Profit Organisations: A Case Study of Malaysia

2021 ◽  
Vol 8 (2) ◽  
Author(s):  
Rozaidy Mahadi ◽  
Noor Kaziemah Sariman ◽  
Andy Lee Chen Hiung
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Financial Control ◽  
Non Profit ◽  
Control Framework ◽  
Financial Governance ◽  
Financial Scandals ◽  
Government Organisation ◽  
Financial Misconduct

There have been many financial scandals associated with religious-based non-profit organisations (RNPOs), their involvement in unethical and wrongdoing has pressured non-profit organisations, especially religious-based NPOs (RNPOs) to start adopting highly transparent and accountable financial management practices. Despite many efforts to improve the RNPOs’ service quality, their integrity has been tinted with many scandalous incidents of funds embezzlement and corruption. Poor financial accountability and lack of legal requirements are argued to be the underpinning reasons for such financial atrocities occurring. With the absence of sound financial governance and comprehensive financial regulations, it has been impaired the government’s ability to detect, prevent and correct RNPOs’ financial misconduct. To prevent financial misconduct from repeatedly occurring, having cogent financial control practices will ensure the RNPOs upholding their accountability duties to the clients they have served. Therefore, the objective of this paper is to examine Malaysian RNPOs financial controls practices. In doing so, various religious-based NGOs’ (i.e. Islam, Buddha, and Christian) representatives were interviewed, analysed, and appraised with Simon’s (1994) control framework. The findings indicate that the RNPOs financial control practices are mediated by the virtue of the religions that they have adopted, the RNPOs’ affiliation (i.e. local-based, foreign-based, and/or semi-government organisation), and the level of sponsorships and grants they have received.

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