Enron

Enron is a classic example of how a few shitty apples spoil the bunch. Because a few individuals chose to be greedy, their actions affected millions of community worldwide. As professional accountants, we lose an ethical and legal certificate of indebtedness to prepare accurate financial information on the corporations we ply for, as well as those we are tasked to examine. This information is relied on heavily by potential investors, as well as current investors and shareholders. For most, it is the only glimpse they study of the internal whole kit and boodle of the companies, and how they manage their resources. Potential investors require accurate information in coordinate to maintain an informed decision on whether or not to risk their money in an organization. It is all overly common in todays age to incur people in a position of authority who have no business being there. As a result, these individuals make poor business decisions which affect may people and have the possibility if harming millions more. It starts with one bad decision, and snowballs downhill from there. The trouble at ENRON began when managers decided to act unethically and illegally by providing income statements wake huge profits.

Some say Enrons demise is rooted in the fact that in 1992, Jeff Skilling, then president of Enrons trading operations, convert federal regulators to permit Enron to use an accounting method acting know as mark to market. With mark to market accounting, the price or value of a security is recorded on a daily basis to calculate profits and losses. Using this method allowed Enron to count projected earnings from long-term energy contracts as current income. Use of this technique (as well as both(prenominal) of Enrons other questionable practices) made it difficult to see how Enron was in truth making money. The decision was first made in order to attract new investors. This resulted in a multi-billion dollar adventure which led to the collapse of the company, and left many investors penniless. The accounting... If you want to wank a full essay, order it on our website: Orderessay

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