Terminology
Intentional misrepresentation or omission of financial data that is misleading and causes financial harm. In accounting, this includes misappropriation of assets and fraudulent financial reporting.
What is fraud?
This accounting method, notoriously abused by Enron, allowed them to immediately record the projected profits from long-term contracts, leading to inflated earnings before revenues were actually realized.
What is mark-to-market accounting?
This individual, HealthSouth's first CFO, was one of the initial executives to plead guilty to fraud charges and fully cooperate with federal investigators, exposing the widespread scheme.
Who is Aaron Beam?
John, a CFO, consistently makes decisions that prioritize the long-term trust and perception of the company among investors and the public, always striving to protect and enhance the firm's standing in the market. John is expressing this lens.
What is the Reputation lens?
This rapper was a co-founder and face of the Fyre Festival, heavily involved in its promotion.
Who is Ja Rule?
In Dr. Baird's "Be Attentive" step, identifying all the pertinent facts also requires recognizing these key individuals or groups who will be impacted by the ethical decision.
What are Stakeholders?
This Enron Vice President sent a memo to Ken Lay in August 2001, warning about accounting irregularities and questioning the Raptor transactions.
Who is Sherron Watkins?
This is the nickname that the Healthsouth Case became known as in E&Y Audit circles.
What is HellSouth?
David, a financial manager, proposes a restructuring plan that will regrettably lead to the closure of a small, underperforming branch office, but will also save over a hundred jobs at other locations and secure the company's long-term viability, creating the most positive outcome for the largest number of employees. David is expressing this lens.
What is the results lens?
Billy McFarland's first major business success was this exclusive, card-based membership club marketed to millennials for social perks and access to events. (You will need to spell it correctly)
What is Magnises?
Focusing on the character of the moral agent, this theory asks, "What kind of person should I be?" rather than "What should I do?"
What is virtue ethics?
As Enron's CFO, Andrew Fastow created this special purpose entity, named after his wife and children, to conduct off-balance-sheet transactions that concealed the company's debt.
What is LJM?
Aaron Beam, HealthSouth's first CFO, famously described Richard Scrushy after their initial meeting as either the most brilliant businessman he'd ever encounter or this.
What is "con artist"?
Maria, a senior accountant, advocates for a new bonus structure that equally distributes a portion of the company's profits among all employees, asserting that a fair and equitable system fosters a stronger, more cohesive work environment for everyone in the organization. Maria is expressing this lens.
What is the relationship lens?
To generate buzz for a luxury music festival that never delivered, the Fyre Festival team and its influencer partners posted this simple but mysterious image on Instagram.
What is the orange tile?
According to the Baird Decision Model, this step involves organizing the collected information and pinpointing the fundamental values that are in conflict within the dilemma.
What is Be Intelligent?
This month and year mark when Enron officially filed for Chapter 11 bankruptcy protection.
What is December 2001?
Following his father's legal troubles, Richard Scrushy's son, Brandon Scrushy, became the president of this particular pizza, wings, and waffles franchise.
What is Zoner's?
As a tax consultant, Emily discovers a novel interpretation of tax law that could reduce a client's liability. Despite the potential for a substantial commission, Emily advises against it, stating her unwavering professional obligation is to recommend only strategies that are explicitly and unambiguously supported by current statutes, prioritizing her duty over potential financial gain. Emily is expressing this lens.
What is the rights/responsibilities lens?
The initial lawsuit filed by Geragos & Geragos against the Fyre Festival team sought this staggering amount in civil damages.
What is $100,000,000?
This SEC rule can hold auditors liable for negligence in connection with the purchase or sale of securities, particularly if they are found to have acted with scienter in misrepresenting or omitting material facts.
What is Rule 10b-5?
This Enron executive, once CEO of Enron Energy Services, became notoriously known for selling off over $250 million in stock before the company's collapse, often associated with his lavish lifestyle.
Who is Lou Pai?
HealthSouth opened its very first outpatient rehabilitation facility in early 1984 in this U.S. state capital, before opening a second facility in Birmingham later that year.
What is Little Rock, Arkansas?
A pharmaceutical executive, Anna, greenlights the accelerated production of a new, highly effective vaccine. The compressed timeline might marginally increase the risk of minor, non-life-threatening side effects in a small segment of the population, but she prioritizes widespread, rapid distribution to prevent a projected major surge in illness and save countless lives globally. Anna is expressing this lens.
What is the results lens?
While out on bail for his role in the Fyre Festival scandal, Billy McFarland continued to defraud people with the help of this associate.
Who is Frank Tribble?