Enron: The Smartest Guys in the Room Extra Credit for Accounting II By: Grace Lindley ENRON: The Smartest Guys in the Room is the story of one of history’s greatest business scandals‚ in which top executives of America’s seventh largest company walked away with over one billion dollars while investors and employees lost everything. Based on the best-selling book The Smartest Guys in the Room by Fortune reporters Bethany McLean and Peter Elkind‚ and featuring insider accounts and
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OBJECTIVE: 3 METHODOLOGY 3 THE ENRON STORY: BRIEF 4 HOW AND WHAT TYPE OF FRAUDS WERE COMMITTED? 5 THE ROLE OF STOCK OPTIONS 5 THE USE OF OFF-BALANCE SHEET PARTNERSHIPS 5 Example: LJM 5 Chewco 6 LOBBYING 6 ACCOUNTING PRACTICES 6 DIFFERENT ETHICAL DIMENSIONS 7 SOCIAL DIMENSION 8 AFFECTS ON EMPLOYEES AND SHAREHOLDERS 8 ENRON INDIA 8 AGGRESSIVE NATURE OF ENRON: PERSONAL ETHICS 8 ENRON’S ARROGANCE: PERSONAL ETHICS 9 EXECUTIVES ABANDON ENRON 9 POLITICAL DIMENSION: SYSTEMATIC
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of the Enron Scandal The Enron scandal is one that left a deep and ugly scar on the face of modern business. As a result of the scandal‚ thousands of people lost their jobs‚ some people lost their entire pensions‚ and all of the shareholders lost the money that they had invested in the corporation after it went bankrupt. I believe that Kenneth Lay‚ former Enron CEO‚ and Jeffrey Skilling behaved in an unethical manner without any form of justification‚ but the whistleblower‚ former Enron vice president
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Enron: The Smartest Guys in the Room Enron Corporation was an energy‚ commodities‚ and service company out of Houston‚ Texas founded by Kenneth Lay in 1985. Lay built natural gas power energy in East Texas which helped Enron’s stock rise. Louis Borget‚ Andrew Fastow‚ and Jeffery Skilling were the top management executives from 1985 until 2001. Each helped to bring about the demise of the company in multiple ways. One of the first scandals in Enron involved President Louis Borget and two traders
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Effects of the Enron Scandal (Kassie) The Enron scandal had a great effect on the United States‚ with an impact on individuals from the consumer level to those running the company as well as the stock market and investors. Throughout the scandal‚ 4‚500 employees lost their jobs and investors lost approximately $60 billion dollars within a few days. The loss of such a large sum of money meant the loss of old-age and retirement security for many of the investors who put their money and faith in the
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Part 3 The bankruptcy of Enron not only significantly impact the employment and pension of workers‚ but also the relevant major financial institutions‚ including investment Banks‚ commercial Banks‚ pension funds and mutual funds. On Feb. 14th‚ 2002‚ the international accounting standards foundation chairman and former Federal Reserve chairman Paul pointed out that the obvious problems in accounting and auditing profession has formed a kind of crisis after a long-term period of existence. A typical
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“United States vs. Enron” Enron Corporation was one of the largest global energy‚ services and commodities company. Before it was filed bankruptcy under chapter 11‚ it sold natural gas and electricity‚ delivered energy and other commodities such as bandwidth internet connection‚ and provided risk management and financial services to the clients around the world. Enron was established in 1930 as Northern Natural Gas Company and joined with three other companies to undertake this industry. The four
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Enron Corporation: THE RISE AND FALL; ACCOUNTING SCANDAL Submitted To: Professor Bill Bristol Submitted By: Kenneth Rhodes‚ Jr. Metropolitan College of New York (MCNY) TABLE OF CONTENTS I. ABSTRACT...............................................................................................................................2 II. purpose and service....................................................................................................3 III. HistorY.............
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corporate scandals of Enron‚ Tyco‚ and WorldCom. Before filing for bankruptcy in 2001‚ Enron Corporation was one of the largest integrated natural gas and electricity companies in the world. It marketed natural gas liquids worldwide and operated one of the largest natural gas transmission systems in the world‚ totaling more than 36‚000 miles. It was also one of the largest independent developers and producers of electricity in the world‚ serving both industrial and emerging markets. Enron began as a pipeline
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of ethical issues raised in the movie “Enron-the Smartest Guys in the Room” but the four I am going to focus on are listed below. Art Anderson‚ Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. The bottom line was that each and every one of them acted out of greed for the almighty dollar. 1- Encouraging employees to invest and buy stock in Enron when they knew the truth about the lack
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