Enron’s origins date back to 1985 when it began life as an interstate pipeline company throughthe merger of Houston Natural Gas and Omaha-based InterNorth. Kenneth Lay‚ the former chief executive officerof Houston Natural Gas‚became CEO‚ and the next year wonthe 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 for trading commodities‚ which soon became the largest business
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1. Define the problem(s) Enron failed to record some of its transactions. Arthur Andersen did not allow the LJM financial statement to stay unconsolidated. 2. Analyze the situation - again‚ take a "lessons learned" approach. You might use the following questions as guides: A. What important internal controls were ignored when LJM1 was created? 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
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International Journal of Business and Management Vol. 5‚ No. 10; October 2010 The Case Analysis of the Scandal of Enron Yuhao Li Huntsman School of Business‚ Utah State University‚ Logan city‚ U.S.A E-mail: wyl_2001_ren@126.com‚ carolee1989@gmail.com Abstract The Enron scandal‚ revealed in October 2001‚ eventually led to the bankruptcy of the Enron Corporation‚ an American energy company based in Houston‚ Texas‚ and the dissolution of Arthur Andersen‚ which was one of the five largest audit and accountancy
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Pastor Ostrum follows suit with his anti-definition of what love is not‚ he definitely strikes a chord in my heart when he says that “love is not something we wait to have happen to us‚ but something we do.” Many might disagree‚ might argue that love is a two-way street; that in order to give we must first receive. However‚ in the novel “Until They Bring the Streetcars Back‚” by Stanley Gordon West‚ Cal Gant demonstrates this principle of giving time and time again. If love is not something you say
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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 • State-regulated monopolies. • Stable‚ but inefficient. • Natural Gas • Pipelines transported on fixed delivery routes with set prices. Enron Producers
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Enron: The Smartest Guys in the Room The Enron scandal‚ revealed in October 2001‚ eventually led to the bankruptcy of the Enron Corporation‚ an American energy company based in Houston‚ Texas‚ and the de facto dissolution of Arthur Andersen‚ which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time‚ Enron was attributed as the biggest audit failure. Enron was formed in 1985 by Kenneth
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the fate of the soul‚ the nature of the gods‚ and how a person can become good. Many people found him highly annoying and exhausting: but surely‚ to be annoying could not be considered a crime…could it? B. What is the problem? (Instability: Why we need to rethink what the majority believes.) In order for democracy to work‚ people must believe that democracy works. If everyone believes in the process of democracy‚ then the people will gather in the assembly and use their diverse ideas
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3ml of H2O2 to each tube. 6. Wait one minute and record the height of the bubbles in each tube in cm. Record in Table 1. Measure the radius of the test tube and record in Table 1. Part B: 1. Label 3 test tubes acid‚ base and water. 2. Place 3ml of potato catalase into each test tube. 3. Add 10 drops of HCl to the tube labeled acid‚ 10 drops of NaOH to the tube labeled base and 10 drops of water to the tube labeled water. Mix contents by gently swirling. 4. Wait 2 minutes then add 3ml of H2O2
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Enron Corporation Question 1‚ In my point of view‚ the parties are most responsible for the “crisis of confidence” on the part of the public in the accounting profession as following. • The parties who create these auditing standard rules‚ such as SEC‚ Auditing Standard Board. They should publish the Sarbanes-Oxley Act earlier. They should be considered the non-auditing services for auditing clients is a serious issue earlier. • The auditors of the Andersen firm. They didn’t do their
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Papazian Accounting for Enron Introduction In the case of Accounting for Enron‚ the case concerned one of the largest corporate bankruptcies in the US history at the turn of the 21st century. It was Enron Corporation‚ a one time seventh largest most successful US company‚ sixth largest energy company in the world‚ valued at over $70 Billion; they filed for chapter 11 on December 2‚ 2001. Just the year before‚ Enron posted a 57% increase in sales between 1996 and 2000. And Enron shares hit a 52-week
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