The Enron scandal has come to be known as one of the prime audit failures of all time and serves as a classic example of corporate greed and corruption. However, for the generation that watched in horror as corporations such as Enron fell along with the stock market, this scandal. Enron ended up cultivating their own demise for bankruptcy by how they ran their company.
This corrupt corporate culture was a place whose employees threw ethical responsibility to the wind if it meant financial gain. You lose your money just because a company cheated and stole your money. This is what the Enron scandal did to thousands of people.
It could have been stopped if more forensic accountants in the world are checking on the companies. Forensic accountants are in. Case 1. First, I will introduce the two different theories. The volume of litigation against Enron and Andersen is growing rapidly. Andersen's attempts to limit the damage from the fallout of Enron's collapse will face further challenge later this week when a number of top executives from the accounting company face the government's energy and commerce committee.
They will include David Duncan, the Andersen partner fired last week for destroying documents related to Enron even as financial regulators investigated the company. Mr Berardino, speaking on NBC, admitted there had been an error of judgment at Andersen but said information had also been held back from the auditors. And in another case, some information had been withheld that was extremely important to the decision on accounting.
The accounting reflects the results of business activities. This unethical behavior led to even more financial losses after further investigations, and resulted in billions of dollars in losses The company has been one of the leading energy companies, with its closest competitor being the Touchstone Company. The company, whose headquarters is in Virginia, has been expanding in most of its operations with its main target being to extend its market to other regions within the next five years.
On November 14 , the company posted its presentation to explain about its plans and intentions over the next five years. Credit Union Magazine, 73 11 , Urbany J. November Strategic Insight in Three Circles. This paper will include a brief history on the Enron case and talk about some of the ethical issues that caused Enron to go bankrupt. Definitions Bankruptcy - the state of being completely lacking in a particular quality or value.
Audit -- a careful review of financial records to verify their accuracy Balance sheet -- a statement of the financial position of a company at a single specific time often at the close of business on the last day of the month, quarter, or year. Home Page Enron: Who was at fault? Enron: Who was at fault? Powerful Essays. Open Document. Essay Sample Check Writing Quality. While much of the controversy surrounding the Enron scandal focused on the losses of investors, unethical practices of executives and questionable accounting tactics, there were many others within close proximity to the turmoil.
But for those with an opinion, the direction is clear. By more than 20 to one, Americans say senior Enron executives did something wrong in the collapse.
One wrong thing Enron executives did was to sell their own company stock while preventing most employees from selling theirs. By more than nine to one, the public thinks this should not have been allowed. Another mistake was to approach the government to ask for assistance, which Enron executives did several times last fall. By 52 percent to 34 percent, the public thinks that was not appropriate. The negative margin is even higher among those more closely following the story.
On the other hand, by 54 percent to 28 percent, Americans say the Bush administration did the right thing by NOT intervening to help Enron. So far most of them are not worried that what happened to Enron employees could happen to them.
Americans want the government to take action in some circumstances, but not in all. Even though Americans support the government's decision not to help Enron, they do think that there are times when the government should step in to help large companies whose bankruptcy could seriously hurt the economy.
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