The Enron Scandal_Final.docx - Running head THE ENRON SCANDAL 1 The Enron Scandal Hao Cui Renee D'Ottavio Michael Engelhardt Johanna Garib ETH\/557

The Enron Scandal_Final.docx - Running head THE ENRON...

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Running head: THE ENRON SCANDAL 1 The Enron Scandal Hao Cui, Renee' D'Ottavio, Michael Engelhardt, Johanna Garib ETH/557 July 31, 2017 Benjamin Turek
THE ENRON SCANDAL 2 The Enron Scandal Enron is a company that is used in ethics and accounting courses. The company was caught in a large accounting scandal causing stakeholders and the public to lose confidence in the accounting profession. A look at the company helps individuals understand the need for accounting oversight and professional code of conduct. Overview, Key Players, and Aftermath Enron was an energy company who moved from designing power plants based in oil and gas pipelines to a trading network buying supplies and selling to consumers. The company created natural gas contracts and worked with both gas and electricity. Towards the end of the company’s business, Enron tried to move into the telecommunication trading business. The key players involved in the Enron scandal include Kenneth Lay, Jeffrey Skilling, Andrew Fastow, Sherron Watkins, and Arthur Anderson LLP. Kenneth Lay was the Chief Executive Officer and Chairman of Enron. Jeffrey Skilling was the President and Chief Operating Officer hired on as a business strategist. Andrew Fastow was the company’s Chief Financial Officer. Sherron Watkins was the VP and whistle blower. Arthur Anderson LLP was the group of Auditors used by Enron (Thomas, 2002). In 2001 Enron took a down turn in public confidence. Notes on the company’s financial statements were under suspicion as being unclear and nontransparent. Enron imploded when it came to light that the company’s business dealings and reporting were fraudulent. Employees lost jobs and retirements when the company was forced to file for bankruptcy. Procedures Used to Commit the Fraud Despite complex business model and financial reporting, Enron attracted large sum of investment to fund its unethical power house. Enron’s complicated financial reporting structure were hard to understand to stakeholders, it’s complex business model and unethical business

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