The Ethics Of The Enron Case - 1407 Words

The Enron case is a very popular case to show how the profession of accounting is vital to make the corporate world of business flow reliably. Enron was recognized as one of the world’s major electricity, natural gas, communications and pulp and paper’s company. However Enron was found to record assets and profits at inflated, fraudulent and non-existent amounts. Debts and losses were found to be excluded from financial statements along with other major transactions between Enron and other companies to make their company’s book look better. This unethical behavior along with loopholes in the accounting standards and regulations allowed this massive scandal to occur. I believe with proper governance and more ethical management this scandal†¦show more content†¦I believe this is an excellent example to show the requirement of accounting profession in the corporate world and the consequences of not unethical management accounting. Section 2: Introduction – in this section: (i) provide the overall summary for the case and background information about the case organisation; (ii) describe the environment/context of the case organisation, major players, its accounting auditing practices, its corporate governance culture, and ethical foundations within the case organisation; (iii) describe the specific issues/challenges you identified which arose within the case organisation. You may include tables, figures, sidebars, charts and graphs to highlight key points. There are a number of beliefs that led to the fall of Enron. Some say it is the lack of ethical corporate behavior that led to Enron’s bankruptcy. Some say, it was due to the management’s inability to update themselves consistently with capital related information during its corporate gluttony. Some blame their accounting practices such as the mark- to- market that led to their downfall. Others pointed out on mismanagement of their risks as well as stretching out of their capital reserves as well as the various forms of management that were applied by the various company leaders were among the primary reasons to as why the company was led to bankruptcy as well as moral responsibility. (Prebble, 2010). ). Despite this various analysis