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Financial Statement Fraud.Enron.AICPA

Retirement account and i lost my it all some partners

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Unformatted text preview: 1. © 2003, 2005 by the AICPA Role of Andersen Role Was paid $52 million in 2000, the majority for non-audit related Was consulting services. consulting Failed to spot many of Enron’s losses Should have assessed Enron management’s internal controls on Should derivatives trading—expressed approval of internal controls during 1998 through 2000 1998 Kept a whole floor of auditors assigned at Enron year around Enron was Andersen’s second largest client Provided both external and internal audits CFOs and controllers were former Andersen executives Accused of document destruction—was criminally indicted Went out of business My partner friend “I had $4 million in my retirement account and I lost My it all.” Some partners who transferred to other firms now have two equity loans and no retirement savings. equity © 2003, 2005 by the AICPA Role of Investment & Commercial Banks Banks Enron paid several hundred million in fees, Enron including fees for derivatives transactions. including None of these firms alerted investors about None derivatives problems at Enron. derivatives In October, 2001, 16 of 17 security analysts In covering Enron still rated it a “strong buy” or “buy.” “buy.” Example: One investment advisor purchased Example: 7,583,900 shares of Enron for a state retirement fund, much of it in September and October, 2001 fund, © 2003, 2005 by t...
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