Enron Case Study

Enron Case Study

1. Abstract

2. Introduction

3. Responses to Questions

   • 1. While describing the context of Enron, illustrate why was Enron an admired company prior to 2000?
     • Leader in energy trading
     • 1993, largest seller of natural gas in North America
     • 1999, launch of Enron online
   • 2. What led to the rise and fall of Enron? Your discussion should revolve around the role of accounting professionals only (direct or indirect)
   • 3. Why were Enron’s internal and external checks and balances system fail to prevent its demise? Your discussion should revolve around the role of auditors and the accounting regulations.
   • 4. Would continuous auditing have prevented the Enron?
   • 5. Why did the Board of Directors fail to prevent Enron’s demise? And, what role the Board should have played in setting Enron’s accounting policies to prevent its demise?
   • 6. Describe in general terms the breaches of accounting and ethical conduct that occurred within Enron. Use the resources provided identify accounting and ethical codes of conduct that would apply to the accounting profession.
   • 7. Using the information provided in the case readings, describe the FOUR lessons you have learned as an accounting professional from Enron case.
   • 8. Using the lessons learned from the Enron case; describe the effects of unethical business practices on society & community.

4. Conclusion