The film Enron: The Smartest Guys in the Room (2005) demonstrates that Enron‚ as a company‚ was managed through patriarchal and authoritarian principles that facilitated‚ and even encouraged‚ illegal activity. Enron was a well-respected company that received accolades in the press and was named Fortune Magazine’s most admired company for several years; this created
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Major changes in rules and regulations Since the Enron collapsed an array of new laws and regulations has been adopted to tighten corporate oversight. US offices were the first one to come out and implement the policies. Almost all of the firms had their headquarters in the US and they replicated their headquarters policies to a good extend in other offices around the world. Also other governments and regulatory bodies around the world came out with their country specific rules and regulations which
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The Enron Case Questions: 1. Do you believe that there has been a significant shift or evolution over the past several decades in the concept of “professionalism” as it related to the public accounting profession? If so‚ explain how you believe that the concept has changed or evolved over that time frame and identify the key factors responsible for any apparent changes. a. Do you believe that there has been a significant shift or evaluation over the past several decades in the concept
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Enron: What Caused the Ethical Collapse? Andrew Rumsey Post University Enron: What Caused the Ethical Collapse? Enron‚ a Texas based energy company‚ has improved the way that electricity and natural gas is purchased ever since its inception in 1985 when its owner‚ Kenneth Lay‚ merged his original company called InterNorth with Houston Natural Gas Company. In addition to this‚ Enron’s growth was attributed to not only the U.S. congress deregulating the sale of natural gas but its selling of electricity
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IN DEPENDENCE OF AUDITOR – ENRON AND ARTHUR ANDERSEN CASE Introduction The world economy in recent years has got some significant growth but also had quite serious scandals. They caused the shakes for many‚ both citizens and authorities. Therefore‚ it is a challenging time and it is the time for change. An absolutely necessity is to enhance the true reliable financial information because the success on the capital market depends on it. The key factor is to assure that auditors must take a completely
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ENRON The Enron scandal was a financial scandal that was revealed in late 2001. After a series of discoveries involving irregular accounting procedures which could be turned in as fraud‚ went on throughout the 1990s‚ involving Enron and its accounting firm Arthur Andersen. Enron stood at the verge of falling into the largest bankruptcy in history by mid-November 2001. An attempt by a smaller energy company‚ Dynegy‚ was not feasible. Enron filed for bankruptcy on December 2‚ 2001. As the scandal
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Individual Reflection Paper: Worst Team in History: Enron Sasha R. Chin Proofer Denise Greene Professor Haga February 24th‚ 2011 Introduction Teams are used to serve a variety of functions for organizations. According to Levi (2007)‚ teams are comprised of people working together on a common project for which they all are accountable. They are usually part of a larger organization and the members of the team have specific knowledge‚ skills‚ and abilities about the task at hand
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Case Study: Enron Corporation Accounting Scandal 1. What is Enron Scandal? Formed in 1985 from a merger of Houston Natural Gas and Internorth‚ Enron Corp. was the first nationwide natural gas pipeline network. Over time‚ the firm’s business focus shifted from the regulated transportation of natural gas to unregulated energy trading markets. The guiding principle seems to have been that there was more money to be made in buying and selling financial contracts linked to the value of energy
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Enron Case study in OL1150 Unit 4 Accounting methods have changed over the last couple decades. Numerous Fortune 500 companies were concealing debt in an accounting method known as mark-to-market (Ferrell‚ O. C.‚ Hirt‚ G. A.‚ & Ferrell‚ L. 2005). Enron was one of several companies that was hiding their debt‚ while reporting annual earnings of $111 billion. Many Fortune 500 companies went under fire in the early 2000’s for their misleading accounting methods‚ leading investors to believe the company
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3. Depreciation percentage=$1‚640‚200/$15‚411‚620 = 10.64% New Fixed Assets=$15‚411‚620 + $30‚000‚000 = $45‚411‚620 $45‚411‚620*.1064 = $4‚831‚796 new depreciation Pro forma Income Statement Sales ($36‚599‚300*1.12) $40‚991‚216 Cost of Goods Sold ($26‚669‚496*1.12) 29‚869‚836 Other Expenses ($4‚641‚000*1.12) 5‚197‚920 Depreciation 4‚831‚796 EBIT 1‚091‚664 Interest 573‚200 Taxable Income 518‚464 Taxes
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