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What is accountants responsibility towards society using the facts from enron?
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What is auditing and how does it differ from accounting?
Accountants prepare financial statements. Auditors review the work of accountants and render an opinion on the accountants work. Larger companies generally employ their own accountants and hire an auditing firm to review the work of their in-house accountants. There are four, very large, international auditing firms that are known as the "big-four": # PricewaterhouseCoopers # Deloitte Touche Thomatsu # Ernst&Young # KPMG This group was once known as the "Big Eight", and was reduced to the "Big Five" by a series of mergers. Following the Enron scandal in 2002, the Big Five became the Big Four after the near-demise of Arthur-Andersen, who served as Enron's auditor.
What mistake in crisis management was made during the Enron scandal?
Arthur Andersen waited too long to take responsibility for the tampered financial statements and this hesitation alone ruined the firm's reputation just as badly as Enron's.
What is Enron's population?
Enron is not a place with a population. Enron Corporation was a company, not a city or region.
When did Enron end?
Enron ended in 2001.
When was Enron scandal created?
Enron scandal was created in 1985.
When did Enron stop trading?
Enron was filed for bankruptcy on December 2nd 2001
What effect Enron conduct had on stock prices?
After the Enron accounting scandal came to light, its stock price plummeted to 0, which wiped out many investors who had purchased Enron's stock.
Which segment of its operations got Enron into difficulties?
1. Which segment of its operations got Enron into difficulties? 2. Did Enron's directors understand how profits were being made in this segment? Why and why not? a. Enron's directors realized that Enron's conflict of interests policy would be violated by Fastow's proposed SPE management and operating arrangements because they proposed alternative oversight measures. What was wrong with their alternatives? 3. Ken Lay was the chair of the board and the CEO for much of the time. How did this probably contribute to the lack of proper governance? 4. What aspects of the Enron governance system failed to work properly and why? 5. Why didn't more whistleblowers come forward, and why didn't some make significant difference? How would whistleblowers have been encouraged? 6. What were the common aspects that were necessary for the Enron and WorldCom debacles to occur? 7. What actions by directors, executives and professional accountants could have prevented the Enron and WorldCom Debacles 8. Was the enactment of the Sarbanes-Oxley Act (SOX) necessary? Why or why not? 9. What are the three most important improvements in the governance structure that could result from Enron from SOX? 10. What is wrong with Enron's bank financing transactions they knew were without economic substance? 11. How should boards of directors change incentive remuneration schemes for executives to lessen the risk of motivating executives to risk manipulations to enrich themselves 12. What lessons you could learn from reviewing the cases?
When was Enron created?
Enron was formed in the late 1980s as a result of a merger between two gas pipeline firms.
What did Enron do wrong?
Enron was said to have committed fraud in an accounting scandal. Refer to the link below, for more information.
How safe is AAA corporate bond?
Very safe, the biggest risk is a lower credit rating. Those were my thought until Enron. Enron went from AAA to worthless very quickly. Fortunately, we did not own Enron paper.
Was their a final dividend on Enron shares?
no
