Analysis of the Enron Scandal

Running head: ANALYSIS OF THE ENRON SCANDAL
Analysis of the Enron Scandal
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Author’s note

1ANALYSIS OF THE ENRON SCANDAL
Table of Contents
Introduction................................................................................................................................3
The issues surrounding the Enron and the auditor of the company...........................................3
The findings from the research of Ruhnke and Schmidt are stated below.................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

2ANALYSIS OF THE ENRON SCANDAL
Introduction
The Enron scandal is one of the leading corporate collapse of the modern era. Enron’s
auditor is held responsible for the manipulation that they have done in the accounting policies
of the company. From the analysis of the research paper of the Ruhnke and Schmidt it is
explained the losses happened to the stakeholders due to the unethical behaviour of the audit
firm of Enron.
The issues surrounding the Enron and the auditor of the company.
The issue surrounding the Enron and the auditor of the company are stated below
Auditing issues
If the auditor take unfair means while auditing the company’s financial statements
then it will affect the interest of the stakeholders (Ojo 2015). The auditors has violated the
major principles of the IAASB like,
 Supporting the global financial stability.
 Enhancing the quality and standard of auditing.
 Implementations of the standards of auditing in the organisation (Council
2015).
Accounting issues.
In case of Enron the auditors though found that the company is not following any
principles of GAAP as well as they have violated all the principles of the international
auditing and assurance standards board , but they does not inform it to the stakeholders which
results in to the failure of the company (Bhasin, 2016).