Enron Corporation was an American energy, commodities, and service company based in Houston, Texas. It was founded in 1985 as a merger between Houston Natural Gas and InterNorth. Enron eventually became one of the world’s largest electric, gas, and communications company. In 2000, the company’s annual revenue reached $100 billion. Enron was ranked as the seventh-largest company. Shortly after, Enron’s stock price would drop from $90 in August 2000 to $0.26 in November 2001. Enron was caught committing
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Major problem The major problem with the Lehman brothers was their desperation. The executives of this firm were so desperate to trick investors and credit reporting agencies, that they engaged in techniques to “cook the books” to cover up their schemes. To be more exact, Lehman entered into agreements known as ‘Repo 105.’ This repo is referred to as “an accounting maneuver used to shift the assets off Lehman’s books in return for a promise to buy back the securities at a premium days later.”
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Ethics in Accounting By Pace University – New York Accounting for Decision Making, MBA 640 Fall 2011 Required Research Paper Page 1 of 11 Table of Contents Number Content Page Number 1 Introduction 3 2 Ethics in Accounting 4 3 Enron Scandal 6 4 Satyam Scandal 8 5 Conclusion 10 6 References 11 Page 2 of 11 Introduction • What is “Ethics”? Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions
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staring up or execution, initially they had an option of going for a "best in breed" approach, or a combination i.e. “mixed approach”. When Andersen consulting separated from his parent firm Arthur Andersen, with this move came the challenging opportunity to design and implement information technology infrastructure. Complicating matters: · The Andersen technology was becoming outdated and would be of no use. It consisted of patchwork legacy systems, obsolete software platforms that could not
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las irregularidades en la contabilidad de la compañía eran despedidas para poder continuar con la farsa “tranquilamente”. La compañía realmente estaba en la quiebra y logró ocultarlo manipulando la información con ayuda de la firma auditora Arthur Andersen, encargada de la contabilidad de Enron, que luego admitió haber destruido documentos y como si fuera poco, se conoció que Dick Cheney, vicepresidente de Estados Unidos, y su gente también fueron complices y estaban al tanto del fraude. Los altos
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markets. The accounting maneuver responsible for the overstatement – classifying payments for using other companies’ communications networks as capital expenditures – was characterized by the press as scandalous, and it was immediately asked why Arthur Andersen, the company’s outside auditor at the time, had not detected it. WorldCom filed for bankruptcy protection on July 21st. On August 8th, the company announced that it had also manipulated its reserve accounts in recent years, affecting an additional
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and pulp and paper companies before it bankrupted in late 2001. The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. Although Enron went bankrupt and disappeared ten years ago, the impacts it has made on the ethical standards never faded. It took Enron 16 years to go from about
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Not only are Halliburton’s financial statements relied upon by investors, but also the SEC and a number of other interested parties. II. Scandal From 1946 to 2002, the auditing firm Arthur Andersen, LLP provided a variety of attestation and consultation services to Halliburton. A major duty of Arthur Andersen was to audit published financial statements. In a scandal lasting from 1998 to 2002, Halliburton was found to have improperly booked almost half a billion dollars in revenue. Subcontracted
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Summary Arthur Andersen accounting firm was founded in 1913 to help other businesses adapt to new FRS tax regulations. The firm quickly expanded globally and started offering financial consulting in addition to accounting audit. In late 80s Arthur Andersen was divided into two entities, Andersen and Andersen Consulting. High demand over the consulting branch of the company have brought attentions to separate from the mother firm and in 2001 an agreement have been reached to allow Andersen Consulting
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Relevant facts Company specialized in cable and small-bore pipelaying technology Started as a technical division to a major utility Competitive edge gained by its “mole” excavating tools 21 emplyess and over €4,000,000 Electrical and gas bills provide the core of business Questions 1. Analyze the problem presented by the client. Can Alan's problems be re-presented as opportunities? Alan’s problems can be presented as opportunites due to the lack o interest in his work team. He
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