Enrons Questionable Transactions And Arthur Andersens...

Course Project: Enron s Questionable Transactions and Arthur Andersen s Troubles Enron and â€Å"Arthur Anderson LLP (AA)† both started out as reputable companies, but in the end both became unethical (Brooks Dunn, 2015, p. 98). Many experts believe this was due to a paradigm shift in their â€Å"corporate cultures† (Brooks Dunn, 2015, p. 1-608). This shift in employee behavior can be observed from the many questionable strategies that Enron carried out with the enablement of AA. Therefore, this paper will examine the elements that contributed to Enron and AA’s demise through answering two sets of case study questions, provide a â€Å"current update on Enron and AA’s† condition, and will give a â€Å"final conclusion/recommendations for Enron† and AA (WBU, 2016). Thus, making this type of an examination should enhance the knowledge of both the academic and business communities. Elements that Contributed to Enron and AA’s Demise Through Answering two Sets of Case Study Questions (500-750 Words per Case study): (a)=Enron case study questions, and (b)=Arthur Andersen case study questions Q1. (a) The problem with this type of advice from the â€Å"board of directors† was that it allowed the formation of â€Å"Fastow partnerships† between Enron and â€Å"500 SPEs† (Brooks Dunn, 2015, p. 1-608; Powers Jr., Troubh,, Winokur, 2002, p. 2; Reinstein Weirich, 2002; Edelman Nicholson, 2011, p. 3). Unfortunately, this â€Å"alternative† still amounted to a â€Å"conflict of interest† by violating the â€Å"GenerallyShow MoreRelatedSummary of Facts of the Case Study3381 Words   |  14 Pages1.0 SUMMARY OF FACTS OF THE CASE STUDY After understanding the overall of case study, Arthur Andersen: Questionable Accounting Practice, we have identified a few facts. The following subsection will present the facts. 1.1 ARTHUR ANDERSEN Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clerence DeLeny. Over a span or nearly 90 years, the Chicago accounting would became known as one of the â€Å"Big Five† largest accounting firms in the United States togetherRead MoreCase Study Enron Scandal5642 Words   |  23 PagesCASE 3 Enron: Questionable Accounting Leads to Collapse Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant Tilted ―Eâ€â€" in front, slowly revolving in the Texas sun. Enron‘s suggested to Chinese feng shui practitioner Meihwa Lin a model of instability, which was perhaps an omen of things to come. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt that had been concealed through a complex schemeRead MoreEnron Case1899 Words   |  8 PagesExecutives. Kenneth Lay, Andrew Fastow and Jeffrey Skilling sold significant blocs of company stock. e. Government figures. Lay had closed personal ties with the Bush family. Enron’s efforts influence policy making. 2. Looking at all the evidence, what do you believe were the 3 major internal causes of Enron’s collapse? Explain each briefly. a. They were hiding huge derivative losses that would have stopped its growth much sooner. b. The company manipulated their revenue figuresRead MoreMgmt 5590 Final3153 Words   |  13 Pagesserves as a kind of morality tale of corporations, regulators, and investors. As we have discussed in class, the tragic effects of Enron’s overreaching arrogance provide a textbook example of both the best and the worst of American business culture and practice. Although the catastrophe’s complete impact may never be completely determined, it seems likely that Enron’s collapse caused more than one major company to cease to exist, several industries experienced radically changed environments, regulators