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Accounting Scandal - Essay Example
Author : isadorekilback
Finance & Accounting
Pages 4 (1004 words)
Enron was one of the most prodigious companies that flourished against competition in its quest to achieve dominance. However,Enron’s fraudulent activities are also the embodiment of critical American culture that continues to catalyst the push for sales …
Due to Enron’s scandal, the core principles of auditing have dynamically changed. This paper will seek to portray the keen principles of Enron’s root cause of its downfall and the potential impact it made that has crippled other companies. Choose an accounting scandal (from the link below) and summarize it. http://www.forbes.com/2002/07/25/accountingtracker.html Please include the following in the summary: 1) A brief description/background of the company. One of the biggest frauds that has ever taken place in the modern 21st century commerce was the case with Enron. Enron’s scandal without a doubt has been the focal point for one of the biggest busts in the history of American entity. The Enron Scandal and the Neglect of Management Integrity Capacity 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. 2) When the scandal was (or is believed to be) formed. ...