Discussion unit 2.docx - Oversimplifying the case of Enron and Arthur Andersen Enron was using some accounting practices that were questionable Because

Discussion unit 2.docx - Oversimplifying the case of Enron...

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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. Identify what you consider any conflicts of interest in the case of Enron and Arthur Anderson.Enron was Andersen’s one of biggest clients and the firm was generating $1 million in audit fees. The example of this company clearly shows, how the unethical behavior and the lack of the strict policy within an organization, can lead to the down fall of the two companies. The Mark to Market practice (Mark to marketis an accounting practice that involves recording the value of an asset to reflect its currentmarket levels. At the end of thefiscal year, a company's annual financial statements must reflect thecurrent market valueof its accounts” (Kenton, 2017),was used in the Enron
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