Journal of Finance and Accountancy Arthur Anderson Auditors and Enron: What happened to their Texas CPA licenses? Daniel Edelman Texas A&M University-Commerce Ashley Nicholson Texas A&M University-Commerce ABSTRACT This article examines Arthur Andersen‚ its role with Enron‚ and what happened to some of its key players. The demise of Arthur Andersen and Enron was significant. Thousands of people lost their jobs and investments. As a result‚ new laws for publicly traded companies and auditing firms
Premium Arthur Andersen Enron Enron scandal
W.O.T. Analysis of Enron MBA 503 University of Phoenix 05/10/06 Describe the Situation "Enron is now officially out of the energy business. They are now in a new business: confetti." Jay Leno http://politicalhumor.about.com/library/blenronscandal.htm It is a shame that one of the most powerful companies has now gone out of business‚ had reputations destroyed and used millions of tax payers dollars on court costs; all due not having good business ethics. This paper
Premium United States Finance Oxygen
Enron a Case Study Enron‚ once known as the worldwide leader in energy trading‚ began as a natural gas pipeline company. “At its peak‚ Enron brokered up to 20 percent of America’s energy transactions. These included basic contracts to deliver natural gas from wells to pipelines for distribution to homes‚ contracts for the purchase of electrical power facility out port‚ and more complex financial contracts‚ which allowed power companies to manage price and market risk” (Ackman)
Premium Psychology Management Strategic management
Enron Case Study [pic] Part A: Problem Focused Analysis and Recommendations. 1. Brief Case Background. List key events‚ use timeline. Case Background At one time Enron was one of the world’s largest producers of natural gas‚ oil‚ and electricity. It also appeared to be one of the most profitable companies‚ taking shareholders from $19.10 in 1999 to $90.80 by the end of 2000. Enron’s top management answered to a Board of Directors whose responsibility was to question and challenge new partnerships
Premium Enron
formerly Northern Natural Gas Company‚ which was formed in 1932 in Omaha‚ Nebraska. But in 1985‚ it bought the smaller Houston Natural Gas and finally changed its name to Enron. The “crooked E” logo was designed in the 1990s. Enron was well known for transmitting and distributing electricity and gas throughout the United States. Enron developed‚ built‚ and operated power plants and pipelines while dealing with the rules of law. They owned a huge network of natural gas pipelines which spread ocean to
Premium Enron Arthur Andersen Enron scandal
Overview Enron Corporation‚ once the 7th largest company in US and a global leader of electricity and natural gas industries‚ filed for bankruptcy protection in late 2001. It was revealed that the company had been hiding investment losses and created fictitious revenue through several complicated accounting gimmicks. Besides Enron’s senior management who created the whole fiasco‚ many people believed that several other parties‚ such as the Board of Directors and the external auditors should also
Premium Enron Business ethics Management
The accounting scandal at Enron which occurred early during the last decade involved the manipulation of accounting rules in order to enrich the company’s executive leadership. Hence‚ while accounting techniques facilitated the Enron scandal it is more of a tale that is related to the hubris of the firm’s top executives and their deep-seated greed. Evidence that hubris and greed was more of the driving force than the actual manipulation of accounting rules for the Enron scandal is evident in the
Premium Enron Andrew Fastow
The Unethical Behavior of Enron Enron‚ once the countries seventh-largest company according to the Fortune 500‚ is a good example of how greed and the desire for success can transform into unethical behavior. Good ethics in business would be to compete fairly and honestly‚ to communicate truthfully and to not cause harm to others. These are things that Enron did not seem to display‚ which led to Enron’s operations file for bankruptcy in 2001. Enron’s scandal has become one of the most talked
Premium Ethics Business ethics Enron
Enron was once one of the world’s leading electricity‚ natural gas‚ pulp‚ paper and communications companies. However‚ in December 2‚ 2001‚ Enron suddenly filed for bankruptcy. During the ten years before Enron¡¦s went bankrupt‚ Enron¡¦s management had started transferring Enron¡¦s funding to personal accounts and made fake balance sheets‚ which provided investors information about how this company goes. (Gibney‚ 2005) These illegal actions‚ performed by certain individuals‚ finally led Enron to
Premium Chief executive officer Balance sheet Enron
Enron Case 10.8.2014 Melissa Becker Boya Du Sidi (Fiona) Chen Wei (David) Yu In June of 2001 Enron’s new CEO‚ Jeff Skilling‚ was heralded as the “No. 1 CEO in the entire country and Enron was saluted as “America’s most innovated company.”1 Just six months later‚ in December‚ Enron filed for bankruptcy. The failure shocked the public and angered investors. How could this have happened? Did no one see this coming? Where were the accountants? Where were the controls? Enron’s public troubles
Premium Enron Auditing Internal control