Case Study: Accounting for Enron

the Causes and Effects of the Enron Accounting Scandals Name: Do Minh Tam Class: MEP 100 Lecture: Karen Bird Date: December 24, 2010 Introduction Background From the 1980s until now, there have been a lot of accounting scandals which were widely announced on by media. The result of this situation is many companies were bankruptcy protection requests, and closing. One of the most widely reported emulation of accounting scandals is Enron Company. Enron Corporation is one of the largest

used to rank Enron as the most successful business in the United States. The collapse of Enron was shocked the whole world energy trading market. It caused significant losses to investors. In this paper shows analysis reason of factors that lead to Enron demise and also lessons can be learnt from Enron case study. The approach which have used in this paper to respond, the case study question are the background of the case organization and how business structure had been use by the case organization

The biggest fraud cases to ever occur happened in 2001 and 2002 and since then fraud seems to be more and more common around the world. According to Forbes.com (n.d) the biggest fraud cases to ever occur was Enron, Bernard Madoff, Lehman Brothers, and Cendant, with Enron being the largest accounting scandal to ever take place. Prior to Enron’s fraud scandal coming to light in 2001, they were the seventh largest company in the United States by revenue, this was the same year Enron filed bankruptcy

INTRODUCTION Corporate Scandals also known as Accounting Scandals are business scandals that originate from the misstatement of financial reporting by the executives of public companies who are trusted to run these organizations. These misrepresentations happen through overstating revenues, understating expenses, Overstating assets or understating liabilities, use of fictitious and fraudulent transactions and direct falsification of financial statements to give a misleading impression of the companies'

The Enron case is a very popular case to show how the profession of accounting is vital to make the corporate world of business flow reliably. Enron was recognized as one of the world’s major electricity, natural gas, communications and pulp and paper’s company. However Enron was found to record assets and profits at inflated, fraudulent and non-existent amounts. Debts and losses were found to be excluded from financial statements along with other major transactions between Enron and other companies

COLLEGE OF BUSINESS, HOSPITALITY AND TOURISM STUDIES DEPARTMENT OF ACCOUNTING ACC705: FORENSIC ACCOUNTING FRAUD INVESTIGATION TRIMESTER 2 2015 Individual Research Assignment AN ANALYSIS OF CORPORATE ACCOUNTING FRAUD NAME ID # TUTORIAL DAY& TIME FARANA BEGUM 2007002036 THURSDAY 7-9PM ABSTRACT There was a sudden and unexpected collapse of Enron Corp. it was the first in a series of major corporate accounting scandals that has shaken confidence in corporate governance and the stock market

Name Professor’s name Course name Date Title Enron was a company ranked by fortune as the most innovative company then in the united states .Its case was the greatest failure in the history of American capitalism and had a major impact on financial markets by causing significant loss to investors and innocent people indirectly, Recent collapses of high profile business failures like Enron, WorldCom and Tyco has been a subject of great debate and many lessons can be learned from its collapse

ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES Lecturer: DR SITI ZELEHA ABDUL RASHID Prepared by: SAMIRA ALVANDI SHAHRZAD KARIMI HAMED KHAZAEI 1 ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES 2 ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES Table of content: Abstract……………………………………………………………………………..…...4 1. Introduction ……………………………………………………………………..……5 2. Literature review ………………………………………………………………

The accounting profession is perhaps one of the most diverse of them all. Not only are there many different accounting functions such as financial reporting, auditing, accounts receivable, budgeting, investments, analysis, or fixed asset accounting (to name a few), but there’s the fact that accountants are needed for almost every business in every industry. So it comes as no surprise that these are positions with great responsibility. Accountants are often called the gatekeepers of a business’

With the complex system where there were wide ranges of product which include physical assets, it had reached the limits of accounting. The company had taken fully advantage of this to make balance sheet become a perfect picture of company’s performance. They used mark-to-market method of accounting, which state that “once a long-term contract was signed, the present value of the stream of future inflows under the contract was recognized as revenues and the present value of the expected cost of fulfilling