THE RISE AND FALL OF ENRON: A CASE STUDY

The Enron scandal was one of the largest corporate bankruptcies that the world witnessed in 2001 and it led to the complete fall of Enron Corporation, a large energy based company in America. The devastating effect of the Enron Scandal can be accounted from the simultaneous dissolution of Enron’s accounting partner, Arthur Andersen LLP which was one of the Big Five accounting and auditing firms. The magnitude of the fraud in this case can be easily understood by the subsequent formulation of the Sarbanes-Oxley Act by the U.S. Congress in 2002 that ensured the security of the investors from such fraudulent accounting practices by the companies. In this case study I analysed the causes of its downfall and the role of accounting professionals in the demise of the company. Before going into the depth of the case I evaluated the corporate governance and the issues and challenges that the company were facing at that time. Deductive approach was used for analysing the concerned theme of research wherein the aim of the report helped in designing the research direction. I conducted an intensive study of the case to highlight the failures of internal and external checks i.e. the accounting regulations and auditors in detecting the fraud practices of the company. In this paper I have also provided a picture of corporate culture of Enron and the violations of the company’s code of conducts by its leaders. Lastly, my research on the case concludes with the lessons that should be learnt to prevent such corporate scandals reappear in future.


THE RISE AND FALL OF ENRON: A CASE STUDY

Type: Report
Domain: Corporate Governance
Words: 2750
dissertation writing services

Calculate Price

Discount
[ In USD ]
Net Price
[ In USD ]

Other Free Papers from this subject

help me write essay
In need of help but unsure about paying up?
Place A Free Enquiry