Enron : Questionable Accounting History

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Enron: Questionable Accounting Leads to Collapse Enron, a provider of natural gas, electricity, and communications began when two large gas pipeline companies merged together in 1985. CEO Jeffrey Skilling, CFO Andrew Fastow, and Chairman Ken Lay worked diligently throughout the 1990s to build the company to be the largest most successful of its time. Having its name in Wall Street was becoming a norm for the company as it grew beyond all hopes and expectations. The company had become unstoppable as shares increased and partnerships became stronger. Believing so much in the company Business Ethics states, “Jeffrey Skilling went so far as to tell utility executives at a conference he was going to “eat their lunch” (Farrell, Fraedrich,…show more content…
Business Insider states,” After his Enron retirement became worthless, Maddox and his wife Phyllis had to lease their suburban Houston home and move to an old family farmhouse in the East Texas town of Van. They also went back to work. Phyllis Maddox, a retired teacher, became a substitute teacher while her husband mowed lawns and pastures.” The reality that came soon after the company collapsed was not only felt by shareholders but by hardworking Americans as well. The loss of retirement funds set many individuals back and left them with literally nothing in return for so many prior years of hard work. Ways Enron’s bankers, auditors, and attorneys contributed to Enron’s demise. The Economist states, “In America, well-policed stock markets, fearsome regulators at the Securities and Exchange Commission (SEC), stern accounting standards in the form of generally accepted accounting principles (GAAP), and the perceived audit skills of the big five accounting firms, have long been seen as crucial to the biggest, most liquid and most admired capital markets in the world.” The controversial subject of who is to blame for Enron’s fraud able to stay hidden for such an extended amount of time is distributed among three top employees mentioned along with other close working individuals from other companies. The ways auditors, attorneys, and bankers contributed is by their lack of concern and ability to convince themselves the fraud was truly not happening among one of
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