Enron Ethical Issue

8130 WordsOct 4, 201233 Pages
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 ……………………………………………………………….….....5 2.1 Accounting failure concept:……………………………………………….…..….5 2.2 Sample of accounting failure in organization………………………………....…6 2.2 Ethical issue concept………………………………………………………….….9 3. Research methodology…………………………………………………………..…...12 4. An…show more content…
This method has launched by Government Oversight Agency like Security and Exchange Commission (SEC) in United State for research and investigation of large public corporations. Government Oversight Agency is able to clarify the catastrophic losing and failures. Notable that much abuse and misusage can be legal. In term of privatization that is very easy for executive manager to reduce the price of company`s stock according to Information Asymmetry(Gérard Roland 2008 ) .The Executive manager can 5 ENRON ACCOUNTING FAILURE AND ETHICAL ISSUES speed up accounting of e expected costs and postpone accounting of expected revenue as well as using off balance sheet to show the profitability of company is provisionally negligible and poor .All accounting failure not only related to Executives or officials but also the employees and lower ranking official are responsible . Often time employees are in pressure or willingly for modify financial statement either for personal benefit or officials benefit. There are top 10 accounting problems in an organization which will be explain in later part. 2.2. Sample of accounting failure in organization: 10 popular accounting shortfalls 1. Playing with numbers: many corruptions,

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