Enron

1. The Enron debacle created what one public official reported was a crisis of confidence on the part of the public in the accounting system profession. List the parties who you believe were most responsible for that crisis. Briefly develop each of your choices. Several parties are responsible for the precipitous downswing of Enron. Due to lack of audit independence, transparency of Enrons apocalypse and estimable management by the top executives, the collapse of Enron is inevitable. In my point of view, the parties are most responsible for the crises are as follow: 1) Enron Board of Directors counsellinged too lots maintenance on sustaining and creating the largest company in the world. The excerpt from Wherron Watkins garner to Kenneth coiffe mentioned that Skillings role of improper accounting treatments and valuation issues, and insisted to use aggressive accounting to sugar code the monetary statement. 2) Auditors from Andersen Auditors didnt perform to their responsibilities and failed to follow professional standard rules. 3) restrictive result Many regulatory agencies counsellinged too much on free-market policy and fail to question and overlook accountants and auditors professionals estimable and wholeness abilities.

Since Enron was once one of the worlds leading electricity, natural turgidity Company, regulatory agencies should be more skeptical regarding the ways Enron is generating their revenue, limited followup their books periodically and input stricter accounting policies. 4) Andersen Firm Andersen shouldnt focus on the overall revenue develop ment of the firm only, having the skid eth! ical / integrity trainings within the firm are fugitive imperative. The firm should be more than about making their revenues, it is pick out to train and keep their employees up to date with the current ethical principles and policy. 2. List three types of consulting services that audit firms are at once prohibited from providing to clients that are public companies....If you want to make it a full essay, order it on our website: OrderCustomPaper.com

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