Review of accounting ethics : The Enron Fraud Kemal Cankaya Strayer University Arlington Campus Financial Accounting Prof. Tony Somathiti February 1‚ 2013 The Enron Fraud “Enron‚ a Houston-based energy firm founded by Kenneth Lay‚ transformed itself over its sixteen years lifespan from an obscure gas pipeline concern to the world’s largest energy-trading company (both off and online). Enron has become an interstate and intrastate natural gas pipeline company
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Case: The Fall of Enron Enron was so admired prior until 2000; they grew to a powerful company. In 1985‚ Internorth acquired Houston Natural Gas to form HNG/Internorth‚ a natural gas pipeline company. This company was renamed to Enron. At the time of Enron’s creation‚ the U.S. gas market was in the middle of deregulation. In 1985‚ rules were established that allowed gas users to realize the cost savings by purchasing gas at spot prices and separately contracting with pipeline firms for delivery
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REACTION PAPER – THE ENRON SCANDAL FACTS OF THE CASE Enron Corporation was formed in 1985‚ led by Kenneth Lay‚ as a result from the merger of Houston Natural Gas and Internorth that specializes in natural gases and commodities. In 1990‚ the company hires Jeffrey Skilling to lead the trading of commodities under deregulated market and Andrew Fastow later that year (USA Today‚ 2002). Deregulation of the energy markets allowed companies to place bets on future prices‚ and Enron was poised to take
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Enron Case The internal controls that were ignored when LJM1 was created were one‚ LJM’s books were kept separate from Enron’s. LJM1 ignored some of Enron’s entries in the books that were missing. Outsiders owned less than 3% of the Special Purpose Entities equities. There was an error made by Arthur Andersen to let LJM’s financial statement to remain unconsolidated. If the financial statements had been consolidated‚ some of the errors could have been found. They may have even had some time to correct
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Enrons Fall Kenneth Lay – CEO Auditors – Arthur Anderson Jeffrey Skilling – Consultant‚ Hired as a young consultant‚ as due to deregulation‚ Enron incurred massive debts. Jeffrey skilling was hired to come up with innovative new ideas. His revolutionary idea for Enron was to ‘create a gas bank in which Enron would buy gas from a network of suppliers and sell to a network of consumers‚ contractually guaranteeing both the supply and the price‚ charging fees for the transactions and assuming the
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OBS 320: Chapter 4‚ Exploring the External Environment: Macro and Industry Dynamics Leave out: The Value Curve (P. 152-156); and When industry Divide and Collide (P.163-164) 1. Explain the importance of the external context for strategy and firm performance (P. 130-132) A. The External Context of Strategy (Figure 4.1) B. The External Context of Strategy (Explained) It is crucial that the external environment is thoroughly understood in order to formulate an effective
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Sustainable Strategy Management Report 1 – Environmental Audit Thorntons Leyi Shen 4490029 Contents 1. Abstract 2. Introduction 3. External Business Environment 3.1 PESTEL Analysis of chocolate industry 3.2 Porter’s Five Forces 3.3 Industry life cycle analysis 3.4 S.W.O.T analysis (Opportunities and Threats) 4. Internal Business Environment 4.1 Internal capabilities: resources and competences 4.2 S.W.O.T analysis (Strengths and Weaknesses) 5. Conclusion 6. References 1
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The Influence of the external political environment of Uganda on Development projects By Susan Ajambo( Student: Masters in Development Management; University of Agder Norway) Abstract Political factors outside the mangers direct control significantly influence development projects. This paper examines Uganda’s political context and the influence it can have on a project on rural electrification. Such a project can benefit from state support at governmental level in addition to support in identifying
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the Causes and Effects of the Enron Accounting Scandals Name: Do Minh Tam Class: MEP 100 Lecture: Karen Bird Date: December 24‚ 2010 Introduction Background From the 1980s until now‚ there have been a lot of accounting scandals which were widely announced on by media. The result of this situation is many companies were bankruptcy protection requests‚ and closing. One of the most widely reported emulation of accounting scandals is Enron Company. Enron Corporation is one of the largest
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1. The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe are most responsible for that crisis. Briefly justify each of your choices. a) With Enron‚ the responsibility and blame started with Enron’s executives‚ Kenneth Lay‚ Jeffrey Skilling‚ and Andrew Fastow. Their goal was to make Enron into the world’s greatest company. To make this goal a reality‚ they created a company
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