Financial Statement Fraud.Enron.AICPA

Financial results operating characteristics enron

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Unformatted text preview: financial statements © 2003, 2005 by the AICPA Detecting Financial Statement Fraud Fraud 1. Management & Board 2. Relationships With Others Detecting Financial Statement Fraud 3. Organization & Industry © 2003, 2005 by the AICPA 4. Financial Results & Operating Characteristics Enron Fraud Enron Compared to other financial statement frauds, Enron was Compared very complicated. WorldCom, for example, was a $7 billion fraud that involved simply capitalizing expenses (line costs) that should have been expensed (Accounting 200 topic). Enron involved many complex transactions and accounting issues. and “What we are looking at here is an example of What superbly complex financial reports. They didn’t have to lie. All they had to do was to obfuscate it with sheer complexity—although they probably lied too.” sheer Senator John Dingell © 2003, 2005 by the AICPA Enron’s History Enron’s In 1985 after federal deregulation of natural gas In pipelines, Enron was born from the merger of Houston Natural Gas and InterNorth, a Nebras...
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