week 8 Xacc/280 Internal Controls
xx/xx/xxxx xacc/280 week 8 Checkpoint
The collapse of Enron back in 2001 shows a number of unethical practice. This company shows unethical practice in accounting as well as business. This company is a perfect example on how unethical behavior of a few people can affect millions of individuals. This also affected these individuals for many years after. Enron was the first business to have nationwide gas pipeline networks. On November 8, 2001 Enron made an announcement in a SEC filing that they were restating its earnings since 1997, and this would reflect a $586 million dollar reeducation. They reported this only a couple months after there first quarterly loss, this loss was the first in four years. In this case a;; the accountants were charged with preparing inaccurate information. This lead the investors to invest in something that was not there and something that was not true. All investors are relying on a company to have accurate financial information. This is how investors can see management and the resources of the company. Then with this information the investors will make a decision weather or not to invest in the company. I feel that in today's industry its a lot more common to find unethical managers in there positions. These managers are the type that will effect millions of individuals, and can harm allot of peoples finances. The manger of Enron bad the bad unethical decision to give false information on the income statement figures. Due to this unethical decision it turned into a multi-billion dollar disaster. Once this step was made to bring in new investors they could back track and fix what they did. This decision is what led the collapse of Enron and the loss of billions of dollars for investors. IN this company there were managers that made unethical decision and also accountants. If I were to work for this company as an accountant I think that I would have resigned from the company but also let them know what was going on. I
The collapse of Enron back in 2001 shows a number of unethical practice. This company shows unethical practice in accounting as well as business. This company is a perfect example on how unethical behavior of a few people can affect millions of individuals. This also affected these individuals for many years after. Enron was the first business to have nationwide gas pipeline networks. On November 8, 2001 Enron made an announcement in a SEC filing that they were restating its earnings since 1997, and this would reflect a $586 million dollar reeducation. They reported this only a couple months after there first quarterly loss, this loss was the first in four years. In this case a;; the accountants were charged with preparing inaccurate information. This lead the investors to invest in something that was not there and something that was not true. All investors are relying on a company to have accurate financial information. This is how investors can see management and the resources of the company. Then with this information the investors will make a decision weather or not to invest in the company. I feel that in today's industry its a lot more common to find unethical managers in there positions. These managers are the type that will effect millions of individuals, and can harm allot of peoples finances. The manger of Enron bad the bad unethical decision to give false information on the income statement figures. Due to this unethical decision it turned into a multi-billion dollar disaster. Once this step was made to bring in new investors they could back track and fix what they did. This decision is what led the collapse of Enron and the loss of billions of dollars for investors. IN this company there were managers that made unethical decision and also accountants. If I were to work for this company as an accountant I think that I would have resigned from the company but also let them know what was going on. I