Enron Fraud Scandal: Causes, Impact, and Sarbanes Oxley Act

ENRON FRAUD
SCANDAL

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Task 1......................................................................................................................................................3
Task 2......................................................................................................................................................4
Task 3......................................................................................................................................................4
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8

INTRODUCTION
This study investigated the Enron crisis with a company located in Houston , Texas. Enron is
really an American oil company. These were primarily released in October 2001 leading to the
collapse of sime darby, another of the 5 largest auditing and accounting companies throughout
the world. The firm is currently in collapse. It was already listed as the greatest audit ailment,
together with the largest bankruptcy reorganization in U.S life. The study further addresses the
acknowledgement and response of and recognises the theoretic and the national qualification and
represents the moral tension and uncertainty throughout their working life and occupations.
MAIN BODY
Keneth laid founded Enron from the Houston crude oil combining with north in 1985. In addition
to the company's shares, Enron investors lodged a $40 billion complaint, which amounted to
US$ 90.75 / equity in Middle 2000. The inquiry was later launched by the US securities
commission, as well as a competitor from Houston, Dynegy, acquired the firm at a relatively
cheap price. The agreement collapsed and Enron lodged a complaint only Under insolvency code
on December 2, 2001, contrary to chapter 11. Enron's $63.4 percent holdings have made it
America's biggest corporate restructuring (Sale, 2004).
Enron 's portfolio has grown by 311 percent from the beginning of 1990s to the end of 1998,
which is just greater than the formalised annual growth rate as well as a weak 500 index.
Therefore the inventory in 1999 became 56% higher and 87% higher in 2000. Enron 's shares
met its total value by dec. 31, 2000, to something like a cost of $83.13 and even up to $60
trillion, 70 times its revenue and six times the market price. Moreover, Enron has been listed as
largest U.S. Creative Corporation.
Task 1
For traders and observers, the reasons of Enron's collapse is quite complicated. Its dynamic
business model and legal practises have forced the firm to employ accounting restrictions to
manipulate profits and adjust the cash position to produce favourable results. In comparison,
some businesses turned tragic. The convergence of these concerns subsequently resulted
throughout the company's collapse, along with much of the difficulties proceeded by implied