Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 338 views

    Enron Collapse: Case Study

    Uploaded by

    cRizT MaRiA
    Enron was one of the largest energy companies in the world that employed over 20,000 people and generated nearly $101 billion in annual revenues. However, in October 2001, Enron filed for bankruptcy due to a major accounting scandal. The scandal revealed that Enron's reported financial condition was sustained substantially by an institutionalized, systematic, and creatively planned accounting falsehoods, hidden debt obligations and underreported losses. The scandal also destroyed Arthur Andersen, one of the five largest audit and accountancy firms at the time, due to its complicity in Enron's fraud and document destruction. The collapse was caused by overly aggressive accounting, hidden debt, and revelations of questionable auditing practices, as well as the lack

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Enron Collapse: Case Study

    Uploaded by

    cRizT MaRiA
    338 views8 pages
    Enron was one of the largest energy companies in the world that employed over 20,000 people and generated nearly $101 billion in annual revenues. However, in October 2001, Enron filed for bankruptcy due to a major accounting scandal. The scandal revealed that Enron's reported financial condition was sustained substantially by an institutionalized, systematic, and creatively planned accounting falsehoods, hidden debt obligations and underreported losses. The scandal also destroyed Arthur Andersen, one of the five largest audit and accountancy firms at the time, due to its complicity in Enron's fraud and document destruction. The collapse was caused by overly aggressive accounting, hidden debt, and revelations of questionable auditing practices, as well as the lack

    Original Description:

    Enron collapse

    Original Title

    ENRON Collapse_case Study _presentation

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Enron was one of the largest energy companies in the world that employed over 20,000 people and generated nearly $101 billion in annual revenues. However, in October 2001, Enron filed for bankruptcy due to a major accounting scandal. The scandal revealed that Enron's reported financial condition was sustained substantially by an institutionalized, systematic, and creatively planned accounting falsehoods, hidden debt obligations and underreported losses. The scandal also destroyed Arthur Andersen, one of the five largest audit and accountancy firms at the time, due to its complicity in Enron's fraud and document destruction. The collapse was caused by overly aggressive accounting, hidden debt, and revelations of questionable auditing practices, as well as the lack

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    338 views8 pages

    Enron Collapse: Case Study

    Uploaded by

    cRizT MaRiA
    Enron was one of the largest energy companies in the world that employed over 20,000 people and generated nearly $101 billion in annual revenues. However, in October 2001, Enron filed for bankruptcy due to a major accounting scandal. The scandal revealed that Enron's reported financial condition was sustained substantially by an institutionalized, systematic, and creatively planned accounting falsehoods, hidden debt obligations and underreported losses. The scandal also destroyed Arthur Andersen, one of the five largest audit and accountancy firms at the time, due to its complicity in Enron's fraud and document destruction. The collapse was caused by overly aggressive accounting, hidden debt, and revelations of questionable auditing practices, as well as the lack

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    ENRON COLLAPSE

    Case Study

    Presentation by,
    Alwin paul
    Christy Maria
    Arya V jayaprakasan
    Malavika Rajeev
    Parvathy C Subramanian
    Varsha Susan Roy
    Anamya Kalesh
    Pavan S kumar
    INTRODUCTION

    • Employed approximately 20000 staff


    • One of the world’s major electricity, natural gas
    Gas, communications and pulp & Paper companies
    • Revenues of nearly $101 billion
    • Named america’s most innovative company for six consecutive years by
    fortune
    ABSTRACT
    • The Enron scandal, revealed in October 2001, eventually led to the
    bankruptcy of the Enron Corporation, an American energy company based
    in Houston, Texas, and the dissolution of Arthur Andersen, which was one of
    the five largest audit and accountancy partnerships in the world.
    • In addition to being the largest bankruptcy reorganization in American
    history at that time, Enron undoubtedly is the biggest audit failure.
    • The reason for this event in detail including the management, conflict of
    interest and accounting fraud.
    • Meanwhile, it makes analysis the moral responsibility From Individuals’ Angle
    and Corporation’s Angle.
    THE CAUSES OF ENRON’S
    BANKRUPTCY

    Lack of Truthfulness
    • The lack of truthfulness by management about the health of the company,
    according to Kirk Hanson, the executive director of the Markkula Center for
    Applied Ethics.
    • The senior executives believed Enron had to be the best at everything it did
    and that they had to protect their reputations and their compensation as
    the most successful executives in the U.S.
    Interest
    It has been suggested that conflicts of interest and a lack of independent
    oversight of management by Enron's board contributed to the firm's collapse.

    Enron and the reputation of Arthur Andersen


    The revelation of accounting irregularities at Enron in the third quarter of 2001
    caused regulators and the media to focus extensive attention on Anders
    Other factors :-
    • Corporate culture
    • Inadequate ethics Infrastructure
    • Poor corporate governance
    • Compensation and reward system
    THE WARNING OF ENRON’S
    SCANDAL
    (1) There should be a healthy corporate culture in a company.
    (2) A more complete system is needed for owners of a company to supervise
    the executives and operators and then get the idea of the company’s
    operating situation.
    (3)An accounting system which can disclose more financial
    Information should be created as soon as possible.
    (4) Financial statement disclosed with true profits and losses information should
    be followed .
    THANK YOU

    You might also like