Discussion Assignment BE Unit 2.docx - Oversimplifying the...

  • No School
  • AA 1
  • KidKouprey1189
  • 2
  • 100% (5) 5 out of 5 people found this document helpful

This preview shows page 1 - 2 out of 2 pages.

Oversimplifying the case of Enron and Arthur Andersen, Enron was using some accounting practices that were questionable. Because Arthur Andersen was an independent auditor, they were responsible for reporting any questionable accounting practices might be risky to the shareholders of Enron. The Security and Exchange Commission was responsible for requiring and publishing accurate information about Enron's accounting information. In the end, a few Enron employees went to jail, and Arthur Andersen stopped doing business under that name. Identify what you consider any conflicts of interest in the case of Enron and Arthur Andersen. What could have been done to avoid the conflicts of interest you identified? How would you change the laws to correct the problems that came up in the Enron and Arthur Andersen case? Explore how Enron and Arthur Andersen might have been encouraged to act ethically other than direct legal pressures. The case of Enron and Arthur Anderson has been a much talked about case in the United State. Enron Corporation was an American energy, commodities, and services providing company based in Houston, Texas. It was one of the world’s leading electricity, natural gas, communication and pulp paper company and employed about 20,000 staff. It however filed for bankruptcy on December 2, 2001 as a result of accounting malpractices. Enron’s auditor Arthur Anderson was directly linked to
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Fall '19
  • Big Four auditors, Arthur Andersen, Enron scandal

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture