ENRON Ethical Breach - Research Paper Example

Only on StudentShare

Extract of sample
ENRON Ethical Breach

Its stocks continued to increase at a modest rate, but in 1999 – 2000, investors saw a sudden 87% increase in 2000, which coupled with the company being named the most innovating company in America, meant the future prospects for the shareholders seemed excellent. Unfortunately, it was revealed in October 2001 that this almost sudden increase in investors’ confidence was due to accounting loopholes and fraudulent auditing, which allowed the company’s shares and returns to be appearing more favorable than they actually were. This ethical breach included the involvement and dissolution of Arthur Andersen, one of the most famous auditing firms of the world at the time. There is no reason to believe that Enron participated in corrupt practices since its inception in 1985, rather, evidence indicates that the ethical breach that lasted about a decade began several years later, when Jeffrey Skilling was hired and a team of executives was developed to cater to the accounting needs of the company. ...Show more


Running Head: Enron Ethical Breach Enron Ethical Breach Enron Ethical Breach Enron Corporation was a Houston-based American energy and services company established by Kenneth Lay in 1985. The company, which was believed to be the “most innovative company” of the United States and one of the world’s leading electricity, natural gas, communications, pulp and paper company, was formed by merging Houston Natural Gas and InterNorth…
Author : macejkovicedna
Save Your Time for More Important Things
Let us write a custom research paper on your topic
"ENRON Ethical Breach"
with a personal 20% discount.
Find out more

Related Essays

Sarbanes-Oxley and Enron
Back in 2001 Enron shocked the world by declaring bankruptcy. A company that was profitable and worth over $90 a share 15 months earlier totally collapsed due to a lack of ethics, integrity, and the presence of fraudulent accounting activity. In the aftermath of this scandal the accounting profession changed forever with the arrival of the Sarbanes Oxley Act (SOX) of 2002.
7 pages (1750 words) Research Paper
Fraud Case with Enron
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 (2002). The Enron Scandal and the Neglect of Management Integrity Capacity http://scholar.googleusercontent.com /scholar?
3 pages (750 words) Assignment
The Case of Enron and Arthur Andersen
No amount of regulation would have been able to shelter these groups of people from the dealings that went on behind closed doors in the company. The financial losses that shareholders and employees who had their pension funds invested in the company underwent did not end up in profit for the company.
6 pages (1500 words) Essay
Enron Scandal Case study
It is a well recognised fact that for a company to be successful it needs to protect the interest of the stakeholders, employees, internal as well as external customers and the environment in and around the company (Broadley, 2006). Foreign investors feel better in an environment where the basics of the corporate governance is defended and practiced.
5 pages (1250 words) Essay
Guillermo Furniture Store Analysis
Sales and profits were high until the later part of the 1990s when Guillermo encountered competition from manufacturing businesses that were based overseas as well as a large local manufacturer. This competition had a negative effect on Guillermo’s operations leading to a reduction in profits.
6 pages (1500 words) Research Paper
Review of Accounting Ethis: Assignment
Provide support for your answer. 2. Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach. 3. Determine how the organizational ethical issue was detected and how management failed to create an ethical environment.
5 pages (1250 words) Assignment
Earnings Management: The Continuum from Legitimacy to Fraud.
When an individual crosses a boundary between legal and illegal practices, he can find himself at the crossroads. A continuum between legitimacy and fraud in earnings is a challenging question and it can hardly be solved at once. First of all, it is relevant to outline a concept field of "fraud" and "legitimacy" in earnings management.
3 pages (750 words) Research Paper
The investors take diversified investment strategy, where they invest their money in national as well as international investment instruments. Here the researcher tends to analyse the key mechanism of international investment diversification. The diversification process in their investments consist of different types of activities viz.
6 pages (1500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email