Accounting Scandal at EM.TV 1998 - 2000: The Role of the Auditors

Business & Finance, Accounting, Financial
Cover of the book Accounting Scandal at EM.TV 1998 - 2000: The Role of the Auditors by Anonymous, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Anonymous ISBN: 9783640975693
Publisher: GRIN Publishing Publication: August 3, 2011
Imprint: GRIN Publishing Language: English
Author: Anonymous
ISBN: 9783640975693
Publisher: GRIN Publishing
Publication: August 3, 2011
Imprint: GRIN Publishing
Language: English

Seminar paper from the year 2011 in the subject Business economics - Revision, Auditing, grade: 1,00, IE Business School, Madrid, course: Auditing, language: English, abstract: With the accounting scandal around the Munich-based media company EM.TV in the years 1998-2000, the auditors' profession caught unprecedented attention in Germany. As the society had just 'discovered' stock markets for the broader masses, the burst of the dot-com bubble and especially EM.TV's crash served as a painful warning signal that also in the equity markets, higher returns are not risk-free. Quickly after the full extent of EM.TV's scandal became visible and clear, the investor community filed a lawsuit against the management, and also prepared to sue PricewaterhouseCoopers, which audited the financial statements. This paper attempts to shine light on the EM.TV story, focusing on the role of the auditors. While definitely playing a central role, it will be shown that auditing in this particular case rather helped to dismantle the problematic issues and to reveal a more realistic assessment of the company's financial health. I will first give a brief overview of the discussed company as well as the special stock market environment it operated in. Secondly, I will summarize the major accounting malpractices that, consequently, have made this issue so relevant for the topic of auditing. The main part will then analyze the auditing and accountability issues, in this case implemented by PriceWaterhouseCoopers (PwC), by outlining their approach and methodology, and the subsequent actions taken. This will then be drawn further to discuss and conclude with general effects on the auditing market, especially in Germany.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2011 in the subject Business economics - Revision, Auditing, grade: 1,00, IE Business School, Madrid, course: Auditing, language: English, abstract: With the accounting scandal around the Munich-based media company EM.TV in the years 1998-2000, the auditors' profession caught unprecedented attention in Germany. As the society had just 'discovered' stock markets for the broader masses, the burst of the dot-com bubble and especially EM.TV's crash served as a painful warning signal that also in the equity markets, higher returns are not risk-free. Quickly after the full extent of EM.TV's scandal became visible and clear, the investor community filed a lawsuit against the management, and also prepared to sue PricewaterhouseCoopers, which audited the financial statements. This paper attempts to shine light on the EM.TV story, focusing on the role of the auditors. While definitely playing a central role, it will be shown that auditing in this particular case rather helped to dismantle the problematic issues and to reveal a more realistic assessment of the company's financial health. I will first give a brief overview of the discussed company as well as the special stock market environment it operated in. Secondly, I will summarize the major accounting malpractices that, consequently, have made this issue so relevant for the topic of auditing. The main part will then analyze the auditing and accountability issues, in this case implemented by PriceWaterhouseCoopers (PwC), by outlining their approach and methodology, and the subsequent actions taken. This will then be drawn further to discuss and conclude with general effects on the auditing market, especially in Germany.

More books from GRIN Publishing

Cover of the book Is German Gayspeak Dead? by Anonymous
Cover of the book The development of services in transition economies by Anonymous
Cover of the book Threat-Rigidity Hypothesis by Anonymous
Cover of the book An analysis of a sample of persuasive language Martin Luther King, Jr.: I Have a Dream by Anonymous
Cover of the book Die pretiale Lenkung von Finanzmitteln im Konzern by Anonymous
Cover of the book Die Organisationsverfassung der Societas Privata Europaea (SPE) im Vergleich zur GmbH by Anonymous
Cover of the book Music festivals with a closer look on Wiesen by Anonymous
Cover of the book Criteria for the Appropriate Solution of Problems of Local Importance in Selected EU-Member States by Anonymous
Cover of the book Sherlock Holmes - One but not the same? by Anonymous
Cover of the book Globalization - Blessing or Curse? by Anonymous
Cover of the book Nathaniel Hawthorne's 'Legends of the Province House' in relation to historical documents by Anonymous
Cover of the book Objectives of Tort - Principles of Justice or Hidden Policy Considerations? by Anonymous
Cover of the book Insolvency-Bancruptcy by Anonymous
Cover of the book The Origins of the German language - The First and Second Sound Shift by Anonymous
Cover of the book Symbolism of the Scottish Devolution by Anonymous
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy