Failure And Fraud Of Enron

1161 WordsJun 14, 20165 Pages
Introduction In society, there have always been differing characteristics such as failure and fraud that have been linked through time. However, although failure and fraud are connected in several various ways, one tends to come before the other. Generally failure is the absence of achieving success and fraud is committing an unlawful act that is driven by failure or to result in failure. Failure has driven fraud for countless reasons either for financial prosperity or personal supremacy. In many cases the direction of failure and fraud is mainly subjected to the individual’s personal objective. Conversely, there have been many situations in which corporations too big to fail have succumbed to failure and fraud due to a destructive corporate objective. In 2001, Enron, the seventh largest company in the U.S participated in fraudulent activity. The fraudulent activity committed by Enron was the beginning of an inevitable ripple of failure in the company’s future. Although Enron performed the major scandal, the auditing agency Arthur Andersen was highly responsible for their negligence and their participation in the deception of the financial investors. The general public didn 't easily predict the downfall of Enron because it was one of the most thriving establishments in the corporate world. In many cases, companies as substantial as Enron are sometimes used as a measurement to gauge how the economy is preforming in the current market. The financial fraud
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