The Scandal Of The Enron Scandal

1320 Words Apr 22nd, 2016 6 Pages
Accounting is a necessary and vital part of maintaining any business, it is needed to file taxes, know how much one has in assets and liabilities, and indicate to investors whether the company would be a profitable undertaking. However, sometimes the accounting goes horribly wrong when people, even those who seem to be moral and uncorrubtable, fudge the numbers. By inflating books, they can get away with billions of dollars in fraud and make nice bonuses for themselves. However, these acts of greed affect not only the fraudulent person, but their families, coworkers, and other businesses. There are several ways massive accounting fraud has taken place in companies, from increasing depreciation, to not reporting debt, to right-out making up numbers to report. These frauds have been detected in multiple ways as well whistleblowers, internal audits, and even the fraudulent people themselves. The effect of these scandals have taken a heavy toll on businesses financially and on people involved emotionally. One scandal that had a lot of family involvement and heartache was the Bernie Madoff scandal in 2008. Bernie Madoff, along with his accountant David Friehling and Frank DiPascalli orchestrated the largest Ponzi scheme ever with his investment securities business. Madoff’s company Ascot managed a diverse portfolio of clients, from high-profile multi-millionaires to hospitals to non-profits. They all suffered losses, and some even lost all that they had because of investments in…

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