Enron Scandal Of Enron Corporation

1145 Words Aug 4th, 2016 5 Pages
Introduction
Enron scandal which aroused in 2001 was one of the most famous events in the area of fraud audit. As the auditor company of Enron, Arthur Andersen failed to prepare true and fair auditing reports. They both suffered lethal loss at that time. The following paragraphs will discuss this fraud event, including the organization history, the organization’s event, the fraud issue in the event, the consequence of the main stakeholders, auditors in the event and their roles, and the current situation of people who are responsible.

The organization, the time and place
Enron Corporation was an energy company which founded in 1930 in the United States. At that time, the predecessor of Enron was named as Northern Natural Gas Company which was mainly based in Houston, Texas. In 1985, the Northern Natural Gas Company purchased one of its competitors, Houston Natural Gas Corporation, and renamed as Enron Corporation. During Enron’s operating years, over 30 different types of products are provided around 40 countries in the world, such as power, petrochemicals plastics, steel and pulp and paper. Before the bankruptcy of Enron, it had approximately 20,000 staff around the world and it was the seventh largest American company and one of the largest integrated communication, natural gas, pulp and electricity companies in the world (Referenceforbusiness, 2016).

What happened – an overview of the events in general
However, a series of intentional accounting frauds lead Enron…

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