Enron Company

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The cases that occurs to Enron and Worldcom accounting scandals in the United States (2001), Parmalat in Europe (2001) Satyam in India (2008) caused a lot of criticism aimed at the quality of the audit and the audit conducted by the Offices of Certified Public Accountants (KAP). Lack of independence set out as one of the main causes of reduced audit quality. Enron scandal is collapsed , there are several businesses that be fall large corporations in the United States. Worldcom is also one of the largest telecommunications companies in the United States with a protect the financial manipulations spending U.S. $ 3.8 billion to impress it reap the benefits, but in fact it is loss . However, in this paper we will discuss the case of Enron data manipulation that occurred in the United States. This cases involving public accounting Enron Arthur Andersen, Enron management has done window dressing in a way to raise revenues worth U.S. $ 600 million and hiding debts of U.S. $ 1, 2 billion with off-balance sheet techniques. Enron's auditor, Arthur Andersen office Huston blamed for helping engineering process financial statements for years. Finally in a short time, Enron reported its bankruptcy to the capital market authority. Arthur Andersen was also blamed for having carried out the extermination of thousands of e-mails and other documents related to the Enron audit. Actions undertaken by Arthur Andersen was not in accordance with Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS). If Arthur Andersen working with prudent that financial information does not contain reliable audits doubt. Community response to the Enron case shows that the profession Auditor (Certified Public Accountant) is indeed an industry membership and trust.Until, when trust violated then reputation will also decrease. Case this is a major challenge for the future auditors to work in accordance with professional ethics and standards set in the middle of...
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