Enron Case

7190 WordsAug 15, 201029 Pages
The Enron Accounting Scandal Presented By: Jennifer Buondonno Nirmala David Robert Pufky Matt Rollings ENRON Page 1 of 27 Table of Contents Executive Summary……………………………………………………………..3 (I) Introduction to the Enron case and the organizations involved……. 5 Background information & industry…………………………………………….. 5 Organizations and officers involved……………………………………………..6 Accounting firm and partners involved………………………………………….8 Enron’s industry………………………………………………………………….. 9 Enron’s injured parties…………………………………………………………… 10 (II) Enron’s accounting fraud and misrepresentation……………………. 11 Explanation of the fraud…………………………………………………………. 11 Damages incurred…………………………………………………………………12 Final outcome of the Case………………………………………………………. 13 How the…show more content…
Enron’s attempt to create a constellation of partnerships that would allow managers to shift debt and losses off of the books would soon fail. In August of 2001, the now infamous internal whistle blower Sherron Watkins, formerly the Enron Vice President for corporate development, sent an 1 www.washingtonpost.com/wp-srv/business/enron/front.html ENRON Page 5 of 27 email to Kenneth Lay, warning him that Enron would “implode in a wave of accounting scandals ”. CEO Jeffrey Skilling suddenly resigns, two months after the memo was sent to Lay. Enron, with the help of the Andersen Accounting firm, would lose control of their illegal attempt to conceal the debt and losses of the company. Ultimately, Enron would become bankrupt. This scandal is the one of America’s largest investigations into a firm’s illegal accounting practices and attempt to conceal it from the shareholders and credit lenders. Organizations and Officers Involved To unmask the Enron scandal and find out what really happened, several organizations and officers of Enron are working together. Among the organizations responsible for unfolding the Enron scandal are the United States Congress, US Department of Justice, IRS, Securities and Exchange Commission, and the United States penal system. Congress is now responsible for combing through thousands of documents and scheduling hearings in the court system. The US Department of Justice is

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