Enron Fraud Left Terrible Impact On Modern Business

1513 words, 7 pages

Intro Sample...


Everyday we read in newspapers about crime in financial world. One of this news came out in 2001 when Enron Corporation filed to provide information to support their activities which followed by major lawsuits and continuing bankruptcy. This story will be in history of United States and also around the world remembered forever. Many people lost their jobs, stability, shareholders lost a lot of money invested in the company, people lost their entire pension and much more, people lost their trust. It was one of the largest frauds in the history; the SEC has uncovered information on fraud committed by Enron. Many of the executives were charged with money laundering, conspiracy, securities fraud and the list of charges is very long.... View More »

Body Sample...


What happened, who is responsible for what happened and what should be done to prevent this happening again? The Enron story is fascinating because people think that it is a story about numbers when it is actually about complicated transactions which ended up with disaster.
Beyond the financial issues Enron was suspected to be involved in political conspiracy, Enron was large corporate contributor to presidential campaign for Jorge W Bush. Kenneth Lay used his political relations in deregulation of government in natural gas industry. After getting on the market in mid 90th Enron start making great deals which was like casino. The huge profits of Enron over several years made some very curious about legibility of the business. There were manipulations and wrong decision making even back then. Kenneth Lay did not care about anything else but for Enron make billions of dollars in profit.
It was very hard to analyze Enron, “It is very difficult for us on Wall Street with as little information as we have” says analyst on Wall Street. If it was really hard to realize what kind of transaction Enron was involved in for analysts on Wall Street what can we say for regular people who has a very little understanding of financial statements.
Accounting is very important profession in the business world. It helps business to follow rules and run its normal operation. Accounting determines if there are a mistakes and how the organization has to balance all out that information is presented fair. The main role of accounting is control of activities, record of ...

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