Enron Corporation: Rise and Fall

GROUP ASSIGNMENT

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Table of Contents
Introduction......................................................................................................................................3
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
The focus of the journal was independently based on the fall of Enron Corporation. It dug
into the issues related to the ups and downs faced by the company throughout its lifetime. The
problems regarding its market to market accounting approach. The journal discussed and
elaborated the matters regarding the use of this market to market accounting approach used by
the company itself (Healy & Palepu, 2003). Discussion regarding this topic might help in
deciding whether the strategy used by the company in this matter was helpful or not. A study of
special purpose entities was done in this journal. This particular study helped in deciding how the
company used this strategy in gaining financial support (Braun, 2019). This study found that the
management and of Enron corporation enjoyed high remuneration and compensation. The
question thus comes out that what was the primary purpose behind this opportunity to the
management body, high amount of stock options to the management is a matter of question
(Eger, 2013). This particular benefit is the high amount of stock options were given to the top
management only and not the others. The examination to find out the purpose behind the same
was needed to be done. Therefore, the study focused on finding the reasons behind the same. The
study further focused on the examination of the code of professional ethics. It tried to dig into the
correlation of code of professional ethics with the auditors or accountants of the company. It
focused on finding out whether the auditors or accountants of the company followed the code of
professional ethics or not. The entire journal was attentive towards the rise and fall of the Enron
Corporation and the reason behind the same.

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