Category: Enron

Overview Crime has been part of society for a long time. History reveals various forms of crimes from time to time and in different societies. The reason why people commit a crime has been a difficult puzzle. Various theories try to explain various forms of crime, why they occur and how to prevent crime. White-collar…

The documentary tells the story of the biggest fraud in US history. It expresses the narrative of a firm collapse that led to a business scandal. The company was conducting power fraud in California, which led to the executives arrest. However, they managed to get away with more than a billion dollars during the crash,…

Table of Contents Abstract Introduction Background Ethical Dilemma in the Movie How the Documentary Resolved the Dilemma Possible Alternative Solutions Lessons for Accounting Students Conclusion References Abstract The Enron Scandal was an accounting fraud perpetrated by senior executives of Enron Corporation. It comprised the extensive use of unethical practices, the breakdown of corporate governance structures,…

Enron: The Smartest Guys in the Room is one of the most captivating movies that touch upon numerous themes about people, their crimes, and their actions outcomes that lead to the greatest scandals in the business world ever. This documentary movie tells a story of how executives of the company earned about one billion dollars…

Regulatory Requirements Enrons Scandal Factors Members of the Boards of Directors it is prohibited to extend loans to subsidiary companies (Neblett, 2003); auditing financial statements should be performed by the audit committee under a companys board of directors (or by the board of directors itself); audit committee members of the board of directors should not…

«Cooker jar reserves» concept The cooker jar reserves was a strategic technique that was used by Enrons management to save what they had earned from a rainy day using the means of storing extra earnings in reserves. The term reserves from the cookie jar may also refer to a firms aggressive assumption of estimate depreciation…

Enron: The Smartest Guys in the Room is considered to be a documentary film about the collapse of the greatest world corporation; it was presented to the public in 2005, demonstrating a closer look at the criminal traits of the companys executives and depicting one of the greatest business scandals in the USA. Risk analysis…

Corporate culture defines communication between employees and leaders and approaches to problem-solving. A corporate culture based on ethical principles ensures open and honest interaction of all parties helps effectively respond to any changes in the internal and external environment. However, the corporate cultures lack of ethical principles leaves room for misunderstandings, misunderstandings, and violations. This…

To appreciate the importance of culture on ethics at the workplace, the Enron company was investigated. The firm records one of the hugest bankruptcy scandals in the US in the early 2000s. Ken Lay, the former chairman of the company, was most at fault for the given event as he possessed the power to manage…

Kenneth Lay founded Enron in 1985 in the merger of InterNorth, Inc. and Houston Natural Gas Corporation. Enrod dominated natural gas markets and initially generated huge profits (Byar, 2022). However, increased competition in energy trading led the companys profits to shrink rapidly. Instead of seeking alternative actions to raise their revenues, the company executives began…