Xacc 280 WK 8 CheckPoint - Impacts of Unethical Behavior

Xacc 280 WK 8 CheckPoint - Impacts of Unethical Behavior -...

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Accountants are the people tasked with gathering and recording the financial data of company or organization. This information is crucial to investors, as it provides them the data they need to determine whether they should invest or not invest their money into a specific business. It is not uncommon to find people who make poor decision, in a position of power making choices that will ultimately affect hundreds, thousands, or millions of investors; much like the case of Enron. The problems at Enron started when the decision makers made the unethical decision to falsify their income statement. Over time this inaccurate statement leads to a multi-billion dollar accounting nightmare. What may have started out as a small inaccuracy meant to attract investors, eventually lead to the downfall of the company, while taking billions of dollars that had been invested by millions of people. A key contributor to this inaccurate reporting was the accounting firm of Arthur Andersen. They were in charge of auditing the accounting records of Enron. They failed to recognize the inaccurate reporting of Enron. They
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Unformatted text preview: had misleading information about their income and their equity value. In addition to the false financial statements, Enron later admitted that they had created several partnerships with other companies that they had created to hide their debts and losses. Through this whole charade, there were some internal sources that did try to warn others of Enron's accounting practices, but no one would listen to them because everyone wanted to believe that they were ok. This failure to report the correct data would eventually led to the downfall of the Enron and the loss of billions of dollars. Had I been an account with Enron or with Arthur Anderson, I would have reported the inaccuracies as soon as I discovered them. Whether my supervisors listened or if I had to report it to someone else, I would not have been able to seat by and allow a fraud to be passed along that might cost people their hard-earned money....
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This note was uploaded on 12/13/2011 for the course ACCOUNTING ACC 280 taught by Professor Kenfredrickson during the Spring '09 term at University of Phoenix.

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