Case Study - NORTEL NETWORKS CORPORATION

Answer the questions given below in your own words, do not reproduce directly from the given case:-

1. Explain how the Nortel Scandal took place.

2. In 1998 Nortel's Code of Conduct was viewed as being leading edge. Notwithstanding the code of conduct, Nortel's financial statements were still manipulated with the knowledge and assistance of many employees in finance departments throughout the organization globally. How was this possible?

a. There were a series of recommendations made by the Special Committee to prevent recurrence of the accounting conducts. Give these recommendations.

b. Explain what principles of ethics and responsibilities of the professional accountant were violated.

4. Explain the material weaknesses identified during the whole scenario?

(Source: NORTEL NETWORKS CORPORATION* ETHICAL MISSTEPS, Linda A. Robinson, Centre for Accounting Ethics School of Accountancy University of Waterloo Waterloo ON N2L 3G1 June 2005 )

Attachment:- NORTEL NETWORKS CORPORATION.pdf