ACCT 201 H Outline.docx - Carson Barnes ACCT 201 Professor Adams Honors Option Outline I Enron Corp and Arthur Anderson Co A Who Enron Corp was and how

ACCT 201 H Outline.docx - Carson Barnes ACCT 201 Professor...

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Carson Barnes ACCT 201 Professor Adams March 27, 2018 Honors Option Outline I. Enron Corp. and Arthur Anderson & Co. A. Who Enron Corp. was and how they became who they were 1. Enron started as a merge between Houston Natural Gas Corporation and Internorth, which were both pipeline companies transformed into Enron, a newly missioned energy contract trading organization 2. Apart of Transportation and distribution, whole sale services, Retail energy services, Broadband services, Exploration and production, and The Catch-all Segment (Bierman and Dawsonera) 3. Started off in a place of debt but flourished later as a result of innovative strategy that was initiated by both Kenneth Lay and Jeffery Skilling in order to leverage themselves B. Who Arthur Anderson Co. was and how they came to be 1. Arthur Anderson was one of the Big 5 Accounting firms, as this firm, founded by a Northwestern professor, was the fifth largest in auditing when it came to worldwide revenue. 2. Was started in 1913 by Arthur Anderson in Chicago in an attempt to become a huge success in the accounting industry even though the company was made up entirely on those just coming out of college and smaller amount of capital than desired (Eisenberg and Macey)
3. Built accounting empire, but people were not happy in the business that they were not receiving more for their services, so they branched out to what was and still is Anderson Consulting (Whitford) II. The problems that arose concerning Enron and Arthur Anderson collaboration and how it affected them A. Enron desiring any leverage they could find over competing businesses 1. Focused on looks in order to create an illusion that the company was not really in debt, but rather flourishing. They did this in many ways, but one of them was establishing a chain of shell companies in order to boost income and asset value (Ewing) 2. With the help of major politicians such as president George W. Bush and U.S senator Phil Gramm, Enron was able to freely manipulate the energy supply in many of the powerful markets (Ewing) 3.

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