try to change them and quit. Arthur Andersen died in 1947 leaving his firm in the management of Leonard Spacek and other partners. ENRON: The world’s greatest company turns to be the largest Corporate Bankruptcy in U.S. In the early years of Enron’s operation‚ they aimed to be the largest natural gas supplier in the United States. But as the year passed by‚ Enron achieved more than what they expect. They transform from conventional natural gas supplier into an energy trading company. This was
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UNIVERSITI MALAYSIA PERLIS SCHOOL OF BUSINESS INNOVATION & TECHNOPRENEURSHIP BFT 503 businesss ethics & csr NAME : NUR AINUL MARDHIAH BINTI MD. ZULKIPLI MATRIC NO : 1333430136 Dr. Abdullah bin osman Enron : Questionable Accounting Leads To Collapse History ENRON CORPORATION. Enron‚ a corporation headquartered in Houston‚ operated one of the largest natural gas transmission networks in North America‚ totaling over 36‚000 miles‚ in addition to being the largest
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Enron Corporation‚ once the seventh largest publicly traded corporation in the United States‚ declared its bankruptcy on December 2‚ 2001 (Senate‚ U. S.‚ 2002). Its failure represented the biggest business bankruptcy in the U.S. ever while also spotlighting the moral failings of corporate America’s. Enron has shaken the business world and become a symbol of modern corporate crime. It led to the ultimate dissolution of Arthur Anderson‚ one of the top Audit and accounting firms and drove the formation
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into Enron’s accounting practices and later that year the company filed for Bankruptcy. Key investigations revealed many shortcomings which include the use of complex & dubious accounting schemes to reduce Enron’s tax payments; to inflate Enron’s income and profits; to inflate Enron’s stock price and credit rating; to hide losses in off-balance-sheet subsidiaries; to engineer off-balance-sheet schemes to funnel money to themselves‚ friends‚ and family; to fraudulently misrepresent Enron’s financial
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Answer: Enron numerous executives such as former CEO‚ former chief financial officer and treasurer who forced company to the bankruptcy were found guilty after the bankruptcy. They were engaged in money laundering‚ fraud and conspiracy. In this manner Enron’s leadership undermine the company’s expressed Enron Code of Ethics i.e. respect‚ integrity‚ communication and excellence. Enron: What Caused The Ethical Collapse? Answer: (Introduction) Kenneth Lay‚ former chairman and chief executive officer (CEO)
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either try to change the clients or quit. However‚ in auditing their big client Enron’s financials‚ they went off their reputation. Many criticisms were focused on the accounting and financial reporting treatment of SPE-related transactions‚ in which‚ Arthur Anderson‚ as consultant to Enron at the same time‚ were believed to help cook the book. They not only lost the independence and objectivity in auditing Enron’s financials as an auditor‚ but also allowed some of the Enron officials to commit
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CASE 3 Enron: Questionable Accounting Leads to Collapse Once upon a time‚ there was a gleaming headquarters office tower in Houston‚ with a giant Tilted ―E‖ in front‚ slowly revolving in the Texas sun. Enron‘s suggested to Chinese feng shui practitioner Meihwa Lin a model of instability‚ which was perhaps an omen of things to come. The Enron Corporation‚ which once ranked among the top Fortune 500 companies‚ collapsed in 2001 under a mountain of debt that had been concealed through a complex scheme
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Internal Verification Report Internal Verification Done By Date Assignment Brief Assessors Decision Contents Contents 2 Executive Summary 3 The Corporate Culture 5 The Leadership of Kenneth Lay 5 Contributing Factors for Enron’s Debacle 7 Power Abuse 7 Fraudulent Accounting Practices 7 Employees and Board members 8 Investors Grief 9 Auditors and external regulatory agency 9 Conclusion 9 The debacle of Enron‚ led not only the company to bankruptcy but also its employees
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Enron had been considered a blue chip stock‚ this was event came as a surprise to all and was an overall disaster in the financial world. Enron’s downfall happened soon after it was revealed that the majority of its profits and revenues were the result of deals with special purpose entities (limited partnerships which it controlled). The result was that many of Enron’s debts and the losses that it suffered were not reported in its financial statements. In the early 1990s the Congress of the United States
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internal rivalry created in turn contributed to less communication between operations for fears of being fired. The “survival for the fittest” atmosphere reached the point where illegal activity was deemed necessary to stay on top of the game. Enron’s compensation plans also seemed less concerned with generating profits for shareholders than with enriching officer wealth. Its culture encouraged flaunting the rules and even breaking them. Each Enron division and business unit was kept separate
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