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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Enron’s collapse was the result of unethical practices; alas‚ such practices had a long‚ ignominious presence. The Enron story begins with CEO Kenneth Lay‚ who in 1986 combined his Houston Natural Gas company with several other entities. Until 1996‚ Enron primarily sold natural gas. Yet‚ in a sign of trouble to come‚ in 1987 Lay overlooked evidence of financial misdeeds in the company’s Valhalla‚ NY unit as executives Louis Bourget and Thomas Mastroeni greatly inflated profits while embezzling
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Reaction Paper on Enron Case September 9‚ 2013 Summary: Enron’s origins date back to 1985 when it began life as an interstate pipeline company through the merger of Houston Natural Gas and Omaha-based InterNorth. Kenneth Lay‚ the former chief executive officer of Houston Natural Gas‚ became CEO‚ and the next year won the post of chairman. From the pipeline sector‚ Enron began moving into new fields. In 1999‚ the company launched its broadband services unit and Enron Online‚ the company’s website
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Enron History Special Purpose Entities (SPEs) were used and often abused by most large corporations in the late 1990’s. Enron was likely the corporation that abused the accounting treatment the most‚ but certainly not the only one. The Enron SPEs were not hidden from the auditors or the investing public‚ but were so extensive‚ invasive‚ and complex that no one‚ including primary architect‚ Andrew Fastow‚ was able to understand the total implications. The 2000 financial statements for Enron included
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Trip Winkel Finance 303 May‚ 27 2005 Dr. Namorato The Enron Scandal Enron was established in 1930 as Northern Natural Gas Company and joined with three other companies to undertake this industry. The four companies eventually began to break apart between 1941 and 1947 as a result of a public stock offering. In 1979‚ Northern Natural Gas was placed under new management when it was bought by InterNorth Inc. In 1985‚ Kenneth Lay‚ CEO of Houston Natural Gas Company devised a transaction
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Enron Corporation Before filing for bankruptcy in 2001‚ Enron Corporation was one of the largest natural gas and electricity companies in the world. In addition to being one of the largest bankruptcies in American history‚ Enron undoubtedly was the biggest audit failure. It was one of the most famous company in the world‚ but also one that fell down too fast. In 1985‚ Enron was created by a merge between Houston Natural Gas and InterNorth by Houston’s Natural Gas’s CEO Kenneth Lay. It was
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Imane Malihi Prof. Fred Friend BLW411/511 March 27‚ 2014 The Downfall of Enron Corporation “Ethics and integrity are at the core of sustainable long term success … Without them‚ no strategy can work and‚ as Enron has demonstrated‚ enterprises will fail. That’s despite having some of the ‘smartest’ guys in the room.” by Richard Rudden. As the quotation states‚ ethics and integrity play a key role in the success of any corporation; through these principles‚ companies can ensure their compliance
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Challenges of the Enron Organization LDR 531 October 21‚ 2010 Doreen Gournaris Introduction To be effective as a team‚ team members need to communicate with each other. Enron lacked good leadership within their organization and the leaders in executive levels allowed accounting fraud and decentralized corporate departments. Enron’s team was faced with communications‚ collaboration and conflict management and top leadership had issues dealing with this situation. This paper will (1) describe
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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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BA 215 Spring 2007 Enron Stakeholder Assignment Enron was a dream come true for a lot of people‚ but it was also a nightmare waiting to happen for many more. I am going to examine the collapse of Enron from the management perspective. The three examples of Enron behaving badly that I am going to study are the incidents in Valhalla‚ the electricity trading in California and the conflict of interest between Andy Fastow and his special purpose entities (SPE). These are just a few cases that led
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