Impact of Unethical Behavior Article Analysis

The wrong practices and behavior in the accounting workplace would be personnel who would provide misleading financial documents that they are evolution for personal gain, misuse of funds, overstating taxation, and understating expenses, overstating the value of corporate assets or underreporting the piece beings of liabilities. Sometimes with the cooperation of souricials in other corporations or affiliate unethical behavior is condoned instead of describe. Other unethical practices would be in aspectr trading, securities fraud, bribery, kickbacks and practice session of the financial markets. AT&T, in 1996, combined with Bell Laboratories and its ecesis and technology branches to form aglow(predicate) Technologies Inc. bright usually reported in effect(p) first quarter results because of customer demand for its products. In January 2000 lambent shocked investors by announcing that first quarter revenues would be 20% less than in 1999. This led to an investigation b y the Securities fill in Commission (SEC) of brights accounting practices. aglow(predicate) announced that its year 2000 fourth quarter revenues showed an accounting freakishness of $cxxv million. Lucent likewise announced that it would have to throw off a $679 million adjustment of revenues for the quarter. The SEC charged Lucent for misrepresentation of accounts and misguiding investors.

The SEC alleged that Lucent fraudulently differentiate $1.148 billion in revenues and $470 million in pre-tax income. The SEC excessively claimed Lucent did not cooperate with its investigation and misled the public nigh the investigation. Lucent, in 2004, paid a $25 million fine, consented tha t it go against federal securities laws, us! ed poor internal controls and maintenance of books and records. Lucent violated the revenue credit entry principle and the in effect(p) revealing principle. Lucents failure to disclose side agreements and assign and other incentives to get customers to purchase its products violated the revenue recognition principle. The goal of financial reporting...If you want to get a full essay, order it on our website: OrderEssay.net

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