allowing the fraud to continue as long as it did. AA contributed to the disaster by approving the structure of many Special Purpose Entities (SPE)‚ which Enron used for off-balance sheet financing. The SPEs did not meet the requirements of an independent company and should have been consolidated with Enron’s financial statements. Shares transferred to SPEs were not valued on the financial statements in compliance with GAAP‚ and side deals between Enron and banks were not brought to the attention
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AA’s approval of Special Purpose Entities (SPE) that was used to generate false profits‚ hide losses and keep any undesirable information off Enron’s financial statements. 2. Which Arthur Andersen decisions were faulty? AA made many decisions in regards to the Enron audit which led to their ultimate downfall. Briefly discussed below are some decisions made by AA that failed to adhere to GAAP. AA approved the structure of many Special Purpose Entities (SPE) that were used to generate false profits
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DEBIT CREDIT AND ENRON Accounting has become very essential part of any business in today’s world. It helps the business keep running and makes sure that things are going towards in right direction. It controls expenses‚ improves plans‚ accountability and reporting under given regulatory framework. Accounting plays vital role in profitability of any concern. Profit is the life blood of any business‚ so how profit is reported on books is always key concern. Over a period of years there has been
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ACG 4632 INTRODUCTION TO FINANCIAL STATEMENT AUDITING Spring 2015 Section 422 Instructor: Devin Williams‚ CPA Today • Introductions – hand out • Syllabus • High level – why auditing? • Enron Auditing • Why do we have auditing? • Lemonade Stand Example Did ANYONE Do ANYTHING WRONG? CONCLUSION Did Anyone Do Anything Wrong? YES!! ENRON’S RISE 1985 – Internorth‚ based in Omaha‚ acquired Houston Natural Gas. 1986 – Changed name to Enron and moved to Houston. OLD ENERGY SYSTEM • Electricity
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Enron Fraud The Enron Fraud Enron Corporation began as a small natural gas distributor and over the course of 15 years grew to become the seventh largest company in the United States. Soon after the federal deregulation of natural gas pipelines in 1985‚ Enron was born by the merging of Houston Natural Gas and InterNorth‚ a Nebraska pipeline company. Initially‚ Enron was merely involved in the distribution of gas‚ but it later became a market maker in facilitating the buying and selling
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SPE 90482 Development & Field-Testing of a Cost Effective Rotary Steerable System M.Moody‚ S. Jones‚ P. Leonard‚ PathFinder Energy Services Copyright 2004‚ Society of Petroleum Engineers Inc. This paper was prepared for presentation at the SPE Annual Technical Conference and Exhibition held in Houston‚ Texas‚ U.S.A.‚ 26–29 September 2004. This paper was selected for presentation by an SPE Program Committee following review of information contained in a proposal submitted by the author(s)
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Introduction to Key Issues Dennis Shaughnessy is the senior vice-president for corporate development and Charles River Laboratories (CRL). He prepared a presentation to the company’s board of directors which request to invest up to $2 million in a Mexican joint venture (JV). They need to decide whether to do a joint venture between ALPES and CRL. Some other issues came out at the same time‚ Jim Foster‚ the CEO viewed the proposed joint venture as a potential distraction as his company continues
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York‚ 1970. 6. Schlumberger Fracturing Services PowerSTIM‚ www.slb.com‚ September‚ 2008. Control Bacterially Related Problems‚” NACE 1703‚ NACE Corrosion New Orleans‚ LA.‚ March 16-20‚ 2008. Woodlands‚ TX‚ January 19-21‚ 2009. Shale Formations‚” SPE 104306‚ SPE Eastern Regional Meeting‚ Canton‚ Ohio‚ 11-13 October‚ 2006. Hole Completions‚” NTCE 18-01‚ AADE Annual Conference and Exhibition‚ New Orleans‚ LA.‚ 2009. 12. NACE Standard TM- 0194-04 Field Monitoring of Bacterial Growth in Oilfield Systems‚
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Discipline in High School and Elementary Education Grand Canyon University: SPE-350 January 10‚ 2014 When it comes to special education‚ discipline is a major concern in this area because many students are incessantly being expelled for their behavior issues that are caused by their disabilities. With the previous law students were excluded from school and received long suspension time because of their behavioral problems but when the new law was passed in 2004 students that are disable‚
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responsibilities of a company’s board of directors? (b) Could the board of directors at Enron—especially the audit committee—have prevented the fall of Enron? (c) Should they have known about the risks and apparent lack of independence with Enron’s SPEs? What should they have done about it? The responsibilities of a company’s board of directors include: • Protect the shareholders’ assets and provide a return on investment • Make important decisions that affect shareholders (dividends) • Decide
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