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Research various companies that have experienced large fraud schemes within the last five years. Some examples include Enron, WorldComm, Target, Waste Management, and Wells Fargo. First, analyze the...

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Research various companies that have experienced large fraud schemes within the last five years. Some examples include Enron, WorldComm, Target, Waste Management, and Wells Fargo.

First, analyze the corporate culture of the organization by reviewing their corporate governance information and their mission/vision statements that can be found on their websites and in the annual reports. Next, research the type of fraud that took place (who was involved, how was it detected, etc.).

Develop an academic paper that provides an analysis of the role that corporate culture has on the potential for fraud occurring at any organization.

Your paper should include the role of that corporate culture played in enabling the fraud to be conducted within the organization. Second, your paper should include the role of corporate governance and how strong the policy was within the organization. Finally, your paper should a summary of the fraud that took place and how the fraud was investigated and detected.

Length: 5 to 6 pages

References: Include a minimum of 4 scholarly sources.

Answered Same Day Jun 03, 2021

Solution

Akash answered on Jun 05 2021
137 Votes
Running Head: ACCOUNTING
1
ACCOUNTING
3
ACCOUNTING
Table of Contents
3Introduction
3Mission and Vision Statement
4Role of Corporate Culture for Fraud Prevention
5Analysis of Corporate Culture
5Strength of Corporate Culture
6Summary of the Corporate Fraud and Investigation
7Conclusion
8References
Introduction
The report is based on the two corporate mega-company of the USA. Enron and WorldCom both were the giants and got bankrupt in early 2000’s. The report focus on the frauds and scams that took place in both the companies and led them to bankruptcy. Enron Corporation was an American energy, commodities, Service Company located in Houston, Texas.
Enron was the 7th largest company in the USA till 2002 when it was revealed that the company was involved in accounting frauds. WorldCom was a telecommunication company, it was 2nd largest long-distance telephone company in the USA. The company had extreme growth till 2002 by acquiring other telecommunication company however, later the company had to face bankruptcy due to some accounting scandal.
Mission and Vision Statement
Enron had the vision to become the world’s leading energy company by creating innovative and efficient energy solutions for growing economies and a better environment worldwide. Enron's motto was "Respect, Integrity, Communication, and Excellence." Its mission statement was to treat others as we like to treated ourselves. The company did not tolerate abusive or disrespectful treatment in any manner. Ruthlessness, callousness and a
ogance were never entertained in the company (Agrawal & Cooper, 2017).
WorldCom had the vision to be one of the largest telecommunication companies in the world. The mission statement of WorldCom states that the objective of the company is to be the most profitable, single-source provider of communications and telecommunication services to all the customers around the world. The statement clearly says that they want to make money in any manner.
Role of Corporate Culture for Fraud Prevention
Enron had an efficient control management system and corporate governance system till 1986 – 1996. Enron operated in a highly effective system and there were three parts of the Enron management control system and corporate governance, which were:
Risk assessment and control group:
It was one of an integral part of management where Risk assessment and control (RAC) were responsible to manage the risks of the company’s decisions and operations. Every policy and deals were required to be approved by RAC analysts before being implemented.
Performance review system:
Performance review system (PRS) was designed by employees to assess their effectiveness and efficiency towards the work at a scale of 1 to 5. The feedback system helped...
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