Enron Essay

virtues dictates an enterprise’s true value. Corporations like Enron, Volkswagen, and Mattel once ventures of firm principle and ethics created a rift in the business world. Consequently, these organizations and their lack facilitated the advancement of…

Since its origin, Enron sustained burdensome debt. At times the financial state of the company promised success. However, Enron never fully recovered from the debt with which it was created. The negligence of internal control within Enron eventually led to the company’s demise . Although it is important for companies to monitor every section of SOX, there have been several sections…

Phar-Mor Inc. was a discount drugstore chain that was founded in 1982 by Michael J. “Mickey” Monus. Within ten years of their first store opening, Phar-Mor had 310 stores, and over 20,000 employees in 34 states. Mickey Monus also owned Tamco warehouse, which was the distributer for Phar-Mor. Mickey Monus also owned 60% of each of the ten teams in the World Basketball Leage (WBL). While everything seemed to be growing, and succeeding rapidly, in reality the company was losing money. Between…

losses from major corporate frauds, such as Enron “swamp the losses from all street robberies and burglaries combined.” (Mokhiber, 2007) Furthermore, leaving victims and their families subjected to their recklessness and for some nowhere to turn. The deadly consequences of this weaponless crime is shocking and horrific. The wealthiest Americans not only steal more wealth through white collar crimes, but their crimes also lead to more deaths. In 1985, Enron was established following the merger…

In the light of the growing number of scams, accounting scandals, massaging of books, misuse and misappropriation of public money, the importance of Corporate Governance can’t be overstressed. Formation and proper functioning of Corporate Governance body abiding by international rules and regulations has become of quintessential importance today as survival and success in global market can be ensured only via foreign investment, foreign customers: simply in a word by going global. Image 1:…

This paper provides prescriptive ethical judgement as to the actions made by Sherron Watkins, a CPA and “former VP of Enron(6)”, which caused the corporation to collapse. In summary, Watkins during her term of office became aware of “accounting irregularities” within the company’s accounting records. These irregularities were of such significant materiality, that if left alone, would result in immense public deception, fraud, and potential regulatory consequences. Seeming to have developed a…

Accounting Reform and Investor Protection Act' (in the Senate) and 'Corporate and Auditing Accountability and Responsibility Act' (in the House) and more commonly called Sarbanes–Oxley, Sarbox or SOX became a law on July 30, 2002 as a reaction to Enron and WorldCom-type accounting scandals. The most important part of this Act is that it provides a new nonprofit company responsible for the inspection and sanction of audit firms; this is "the Public Company Accounting Oversight Board”. SOX led to…

wish to elaborate on my personal knowledge, however, I will comment on events in the news. For example, Enron bribed foreign governments in order to win contracts abroad, and Arthur Andersen shredded documents associated with Enron once an inquiry was initiated by the SEC (Securities and Exchange Commission). When those companies were contacted by Forbes regarding their alleged wrongdoings, Enron refused to comment, while Arthur Andersen ignored repeated phones calls. Although a multitude of…

Ethics plays a role in every aspect of business life and is essential to operating a successful operation. Unethical financial reporting, workplace harassment, employee working conditions, workplace diversity and equal pay for work performed are the major ethical issues that if left unaddressed will lead to major problems within an organization. The results of these ethical issues are as numerous as the issues themselves but can be highlighted by businesses losing productivity, employees…

Accounting practices were previously less regulated than they are today. The main reason that we have the Sarbanes-Oxley act is due to series of accounting frauds committed by companies such as Enron, Worldcom, and Freddie Mac. These companies knowingly misstated earnings, overinflated assets, or hid debts and mislead stockholders. These practices were unethical because companies knowingly exploited Gray areas in legislation for profit. After the abuse of accounting frauds occurred the…