The Enron Scandal Of A Company

1193 Words Apr 29th, 2016 5 Pages
To invest your whole savings in a company through stock is an important risk almost everyone will do in their lifetime. When investing in a company you see their financial records and can see if the company’s stock value will go up if you invest in them making your money increase as well. What if this company falsifies their records and in a couple of days the company and its stock value go from $90 per share to just a penny per share. You lose your money just because a company cheated and stole your money.
This is what the Enron scandal did to thousands of people. It could have been stopped if more forensic accountants in the world are checking on the companies. This way they don’t lie about their stock value. Forensic accountants are in charge of checking business financial records to make sure that they are true. When companies falsify their records it makes the company look better, which makes people want to buy shares of their stock. When more shares of stock are bought that will be putting more money into the company. Forensic accounting has been in an increase of jobs since the Enron fraud scandal. Enron fell as a company when this was discovered and it brought down one of the largest accounting firms at this time with it too. Thousands of people lost their money and all the employees lost their credibility and trust. It is the forensic accountant 's job to prevent this from happening, in order to detect the fraud of a company before it affects so many people. The…

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