Enron
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The Enron Scandal
Elton Poole
RES/351
December 16, 2013
Victor Ornelas
The Enron Scandal
When researching the Enron Scandal he or she will find how unethical the decision making was for some top level executives. In October 2001 the Enron Scandal was revealed and led the corporation into bankruptcy. In 1995 Kenneth Lay merged Houston Natural Gas and Internorth together to form Enron. Jeffrey Skilling was hired a few years later and soon organized a dishonest staff of executives that knew how to get around financial auditors in order to hide the truth of the corporations revenue. Enron was more than one billion dollars in debt and losses that were hidden in separate investments that were kept off the record for no one to see. This matter became unethical when Enron lied to auditors about its investments by saying it owned less than half of its outside investment companies stock. If this was true Enron would have the right to not claim its losses on record but, it was later found out that Enron had actually owned over half the these small companies. These practices have not only affected Enron but, certain accountants, stock holders and society as a whole.
“As an accounting major seeking my CPA certification, it has been driven into me that the only companies worth working for are the Big Five Firms,” Lisa Simonetti, a senior accounting major, said. “An occurrence such as Enron filing Chapter 11 shows how large firms are blinded by the almighty dollar, anything to make a buck. Enron should not have attempted to keep separate investment partnerships off the books, and Author Anderson should have had the ethical standing to refuse approval of financial statements.” If everyone had the same thoughts and feelings about these types of crimes a lot of corporations would be more honest knowing that they cannot get away with such heinous acts. Many young employees are faced with these unethical decisions on a daily basis and think being loyal to their superiors will...
Elton Poole
RES/351
December 16, 2013
Victor Ornelas
The Enron Scandal
When researching the Enron Scandal he or she will find how unethical the decision making was for some top level executives. In October 2001 the Enron Scandal was revealed and led the corporation into bankruptcy. In 1995 Kenneth Lay merged Houston Natural Gas and Internorth together to form Enron. Jeffrey Skilling was hired a few years later and soon organized a dishonest staff of executives that knew how to get around financial auditors in order to hide the truth of the corporations revenue. Enron was more than one billion dollars in debt and losses that were hidden in separate investments that were kept off the record for no one to see. This matter became unethical when Enron lied to auditors about its investments by saying it owned less than half of its outside investment companies stock. If this was true Enron would have the right to not claim its losses on record but, it was later found out that Enron had actually owned over half the these small companies. These practices have not only affected Enron but, certain accountants, stock holders and society as a whole.
“As an accounting major seeking my CPA certification, it has been driven into me that the only companies worth working for are the Big Five Firms,” Lisa Simonetti, a senior accounting major, said. “An occurrence such as Enron filing Chapter 11 shows how large firms are blinded by the almighty dollar, anything to make a buck. Enron should not have attempted to keep separate investment partnerships off the books, and Author Anderson should have had the ethical standing to refuse approval of financial statements.” If everyone had the same thoughts and feelings about these types of crimes a lot of corporations would be more honest knowing that they cannot get away with such heinous acts. Many young employees are faced with these unethical decisions on a daily basis and think being loyal to their superiors will...