StudentShare solutions
Triangle menu
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

The Nature of the Fraud and the Impact to the Company - Assignment Example

Extract of sample
The Nature of the Fraud and the Impact to the Company

Enron was a very prosperous and prominent firm that was an American energy company established in Houston, Texas. Enron was formed in 1985 by Kenneth Lay after he had acquired two other gas companies in his quest to become a conglomerate in the American history. Nonetheless, after Enron’s biggest scandal, shareholders lost around $11 billion as the company continued on the downward spiral. Enron finally filed for bankruptcy at its $63.4 billion in assets were completely diluted. Many of the stockholders got measly pennies back for the huge investments they had in the company. Enron was charged with “cooking the books” along with their associates Arthur-Anderson. In essence, the company was running a Ponzi scheme. A Ponzi scheme is a strategy used by creditors to attract new investors in the company and utilize their funds to pay off old debts. Enron’s financial statements did not comply with the operations and finances of the shareholders and analysts (2002). The Enron Scandal and the Neglect of Management Integrity Capacity Moreover, the Enron management continued to implement unethical practices as they would modify the balance sheet in order to favor the revenue goals that the corporation wanted to achieve (2010). "Non-Media" Jury Prejudice and Rule 21(a). The continuous spiral of modifying the financial statements became a continuous habit and the lead cause of the downfall of the company. Undoubtedly, managers in corporate America have to protect the interests of the corporate executives along with the goals of the stakeholders. The management clearly neglected responsibility for overseeing the unethical practices that were plaguing the corporation. The Enron scandal continued to grow worse every year as it became a problem that was out of control (2010). "Non-Media" Jury Prejudice and Rule 21(a). The primary motivation for Enron was to keep their gross income high along with cash flow while diminishing their liabilities and long-term debts. The moral and legal framework that has been embedded in S The dynamic culture environment of Enron was clearly based on a money-making scheme. Corporate employees were under constant pressure to reach their revenue goals that the firm came up with. In essence, Enron’s corporate culture can be best depicted through aggressive growth, risk-taking, profit planning and commercial innovations. Although some may deem this as positive values, one cannot diminish the fact that a corporation must acknowledge and mitigate the risks (2006). Four Years After Enron. Since these values were not balanced and were never embedded in the principles of corporate integrity, the goal to reap high revenue became the core culture value for the organization.  ...Show more
Cite this document
  • APA
  • MLA
(“Fraud Case with Enron Assignment Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from
(Fraud Case With Enron Assignment Example | Topics and Well Written Essays - 750 Words)
“Fraud Case With Enron Assignment Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times


The paper “The Nature of the Fraud and the Impact to the Company” evaluates one of the biggest frauds that has ever taken place in the modern 21st-century commerce. Enron’s scandal without a doubt has been the focal point for one of the biggest busts in the history of American entity…
The Nature of the Fraud and the Impact to the Company
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"The Nature of the Fraud and the Impact to the Company"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Q1. Google. What makes Google a great company to work for In particular, explore the nature and impact that the company's HR
In that working environment only, a common and feasible organizational culture can be created, which will effectively motivate the employees and will enable the employees to establish a psychological contract. Thus, all these organizational behavior issues are interrelated, and so if a common and effective organizational culture is implemented and works out well, the other two concepts will also work out effectively.
12 pages (3000 words) Essay
In all these and more, literature also plays a significant role. No wonder, it is often described as life (Bertaux & Kohli 215). There is really nothing which one cannot find in it. Literature could be so powerful that it would evoke certain emotions in the readers.
3 pages (750 words) Essay
Meeting the Challenge through External Audit
The basic premise of the research is to generate an understanding about fraud and role of external audit; how frauds have taken place in Canadian organizations, its impact and the limitations of external audit to face the problems of fraudulent activities. Fraud can be defined as a pan planned activity which is intended to betrayal another party.
7 pages (1750 words) Essay
TQM Impact on Company Performance
Secondly, the effectiveness of TQM is evaluated based on measurement and metrics, which have to be appropriate and congruent with the processes and methods in order to proceed in the right direction. 
3 pages (750 words) Research Paper
Financial Fraud: Impact on National Economies
The negative impact is also transferred to the national economy and the people therein. Therefore, since national economies contribute to the global or international economy, financial frauds anywhere will result in a negative impact on the international economy.
9 pages (2250 words) Essay
Portion of the foreign aid is always creamed off for bribery of government officials in the developing or third world countries or the least
3 pages (750 words) Essay
Identity fraud its impact and the case for prevention
The main problem is the impact of the identity fraud and the case for its prevention. While identity fraud is as economically crippling as it is insidious, recent research has shown that its growth could be attributed more to the lack of exercising prudent care among consumers and customers rather than the Machiavellian brains of identity fraudsters.
24 pages (6000 words) Essay
In contrast, North Carolina has statutory limitations periods for Civil and Personal Injury Actions. For example; medical
1 pages (250 words) Essay
Nature is a responsibility bestowed to us by God and therefore we should assume this responsibility by preserving and respecting the environment. Therefore this means that nature describes our humanness. For this reasons, human beings should
1 pages (250 words) Essay
The bank investigation documented up to 14 communications that helped to find the root of the missing funds. They would eventually be led to the commercial director of the bank. The case revealed that he had committed
1 pages (250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Assignment on topic The Nature of the Fraud and the Impact to the Company for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us