History of Enron What is Fraudulent Financial Reporting

Enron Corporation History of Enron Enron Corporation was founded in Omaha, Nebraska (US), and in 1985 Houston Natural Gas Consolidated with InterNorth to make, what is now established as the energy based company. The corporation based in Houston, Texas (founded in 1985) was known as the better enterprise in North America that accomplished one of the vast natural gas transmission networks. â€Å"Enron was a provider of products and services related to natural gas, electricity and communications to wholesale and retail costumers† (Chary, 112). The company had the position of the â€Å"Most Innovative† corporation for a couple of years. Nonetheless, back in December 2001, its bankruptcy held the biggest fraud scandals in the history of the US. Kenneth Lay the former CEO of Houston Natural Gas became CEO and the chairman of enterprise and that was the time when they named it the Enron Corporation. The company swiftly all over the years increased to different regional areas, and gained a strong character. During the preceding years of Enron’s expansion, they discovered oil traders in New York that crippled the accounts of company to the amount of almost $1 billion. However, the company had treated the loss up to $142 million and due to that loss the corporation started developing various services so that it would reduce the risk of the price fluctuations. The Enron Corporation expanded countries such as South Africa (1992), entered European wholesalers market back in 1995 because theShow MoreRelatedFraud : Fraud And Fraud1551 Words   |  7 Pagesestablishment of the profession. Fraud can be committed against an individual or a business. In order to identify fraud, an auditor must be able to differentiate between what is considered fraud and what is considered error. Fraud as defined in our textbook as â€Å"intentional misstatements that can be classified as fraudulent financial reporting and/or misappropriation of assets.† On the other hand, error is â€Å"unintentional misstatements or omissions of amounts or disclosures.† This simply means that fraudRead MoreEnron Corporation : The Biggest Gas Transmission System Essay1081 Words   |  5 Pages The Enron Corporation started in 1985 by Kenneth Lay and was the result of a merger between Houston Natural Gas and InterNorth Corporation (Madsen Vance, 2009). Enron had the biggest gas transmission system in the U.S which consisted of a network of 38,000 miles of pipeline (Giroux, 2008). After the addition of Jeffrey Skilling, Enron transformed itself from a producer and distributor of natural gas to a trading company (Chandra, 2003). Enron lobbied hard for deregulation and was capableRead MoreThe Sarbanes Oxley ( Sox ) Act Of 20021617 Words   |  7 Pagesexplored, based on existing research in this area. Brief History of SOX Enactment The Sarbanes-Oxley Act of 2002 was created by Congress in response to financial scandals. There were several incidents which contributed to the need for legislature such as SOX. For purposes of brevity, the focus here will be on two of the largest financial scandals leading up to the passage of SOX, which are of those of Enron and WorldCom. In October 2001, Enron announced it was reducing after-tax net income by approximatelyRead MoreThe Sarbanes Oxley Act2060 Words   |  9 PagesAs the complexity of our financial economy develops it is important that our accounting standards progress in accordance. Accounting is very important to the development of the global and local economies. Accounting is basically the gathering, summarizing and presenting of financial information of an entity to interested internal, external and possible investors. This information should be presented in a non-bias way so that other people are able understand. As the complexities of manufacturersRead MoreThe Ethics Of Enron Oxley Act1309 Words   |  6 Pagesbased corporation of Enron was once considered a top company, until its demise from a complex accounting scheme. The company that was forced to declare bankruptcy and lay off many employees; also resulted in thousands of others losing a significant portion of their retirement funds that were invested in the company’s stock (Ferrell, Fraedrich, Ferrell, 2013). Additionally, the perceived scandal propagated concern of accounting practices of corporations and initiated new reporting practices like theRead MoreFraud Examination Enron Paper1140 Words   |  5 Pages1. Define the problem(s) Enron failed to record some of its transactions. Arthur Andersen did not allow the LJM financial statement to stay unconsolidated. 2. Analyze the situation - again, take a lessons learned approach. You might use the following questions as guides: A. What important internal controls were ignored when LJM1 was created? LJM1 ignored some of Enron’s entries in the books that were missing. Outsiders owned less than 3% of the Special Purpose Entities equities. There wasRead MoreEssay on Analysis of the Enron/Arthur Anderson Scandal1558 Words   |  7 PagesEnron and Arthur Anderson were both giants in their own industry. Enron, a Texas based company in the energy trading business, was expanding rapidly in both domestic and global markets. Arthur Anderson, LLC. (Anderson), based out of Chicago, was well established as one of the big five accounting firms. But the means by which they achieved this status became questionable and eventually contributed to their demise. Enron used what if often referred to as â€Å"creative† accounting methods, this resultedRead MoreThe Ethical Dilemma Of Enron Essay1404 Words   |  6 PagesEnron was formed in 1985 following the merger of Houston Natural Gas Co. and InterNorth Co. The C hairman Kenneth Lay, CEO Jeffrey Skilling, and CFO Andrew Fastow were the backbone of Enron during its growth period. These executives exercised their power and expertise to unethically â€Å"increase† Enron’s profits by hiding the company’s debt. The ethical dilemma that Kenneth Lay and Jeffrey Skilling faced was whether to let their stakeholders know how poorly the company was doing, or to hide the debtRead MoreForensic Paper1628 Words   |  7 Pagesoperations. Although forensic accounting is not a new field, it has become more talked about since cases like Enron came to light. For someone interested in the Forensic Accountant profession they should know that this field can be time consuming, but very rewarding. People who work in this career investigate white collar crimes such as company fraud, fraudulent financial record reporting, and illegal investment schemes. In a recent study by the Federal Bureau of Investigation shows that white collarRead MoreThe Ethics Of The Accounting Profession2258 Words   |  10 PagesNot only are there many different accounting functions such as financial reporting, auditing, accounts receivable, budgeting, investments, analysis, or fixed asset accounting (to name a few), but there’s the fact that accountants are needed for almost every business in every industry. So it comes as no surprise that these are positions with great responsibility. Accountants are often called the gatekeepers of a business’ financial system and rightfully so! They are the ones who are responsible

The Individual and the Community - 963 Words

The Individual and the Community This paper will give insight into the different views of three different philosophers with a never-ending struggle to keep a balance between the community and the Individual. By explaining their views he/she will find different definitions from the philosophers on how to live as an individual under a ruler and how a good citizen should be characterized. For example in Antigone a good citizen would not have gone against the law and buried their sibling in one of the philosopher eyes, but in another’s it made Antigone find happiness so the deed would be cleared and would make it ok. A philosopher of Athens named Socrates believed one could only judge him/herself, if he/she knows what is good or bad in†¦show more content†¦Plato Would be on Ismenes side also because justice and fairness is extremely important to him so by not defying the state she is doing the right thing. Aristotle might agree and also disagree because burying her brother would make her happy, but also not defying the State makes her happy because she doesn’t want to suffer the consequence thus being death. Socrates views on the individual and the community is extremely clear, he strongly disagrees with having an over powering government but rather likes when everyone gets a say in what they want. Plato views are different he believes in having a stronger government so that they can make the rules and everyone has to abide by them, the mindset of â€Å"law above all†. Yet the ruler must take advice at the same time and examine his decisions thoroughly before making them. Aristotle’s views are for everyone to seek happiness and when finding happiness in their life to live the â€Å"good life† because happiness is all you need to live your ownShow MoreRelatedThe Responsibility of the Individual to the Community Essay1167 Words   |  5 PagesMore than a destination at the end of the day, a community is a place people feel at home and a place where people want to feel safe at. Community responsibilities area unit a personalitys duties or obligations to the community a nd embody cooperation, respect and participation. The thought goes on the far side thinking and acting as people to common beliefs concerning shared interests and life. A basic community responsibility is voting in elections. Being socially accountable means folks and organizationsRead MoreThe Tension Between The Individual And The Community1604 Words   |  7 PagesThe tension between the individual and the community has been a problem for society since people settled down and created communities and civilizations. This conflict has endured throughout time and will continue to be a problem in today’s society and into the future. There is no society or government that has escaped this problem, whether you are socialist, communist, democratic, etc. this tension persists. The tensions exist because mostly in areas of extreme class struggle or foreign countriesRead MoreThe Importance Of Community For Individuals With Disabilities1060 Words   |  5 PagesTownley, Greg (2015 ). â€Å"It Helps You Not Feel So Bad—Feel Like You Again†: The Importance of Community for Individuals with Psychiatric Disabilities. Journal of Psychosocial Rehabilitation and Mental Health, pp 1-12 Summary One would think that in today’s society that the ideal of individuals with disabilities appreciating equal opportunities to live and participate in their communities still remains an unrealized goal. This article offered examples that even though an increasing emphasis on supportingRead More Frankenstein, Community, and the Individual Essay1697 Words   |  7 Pagesand the Industrial Revolution, with lessening importance on shared knowledge and the public sphere and more emphasis on individual achievement and identity, leading to a fractured and isolated society. In this paper I argue that Mary Shelleys Frankenstein criticizes the impacts of Industrial Revolution and Romantic era-inspired individualism on the community and individual, using Victor Frankensteins disruption of the reproductive process and subsequent relationship with his creation as examplesRead MoreCommunity, Individuals, And Religious Liberty1415 Words   |  6 Pages001059537 Community, Individuals, and Religious Liberty. The end of the 16th century and beginning of 17th century witnessed the departures of various European fleets setting out on their journeys westward to explore the New World. From the Pilgrims, who came to America aboard the Mayflower, to the Puritans, who later came across their sacred â€Å"city upon a hill,† hundreds of thousands of people eagerly set sail across the Atlantic Ocean on the premise of escaping the King’s tyranny and the uncheckedRead MoreCorruption Of The Nation, The Community, And The Individual1573 Words   |  7 PagesIzzy Rael November 16, 2015 English 10-X Corruption of the Nation, the Community, and the Individual â€Å"Corruption is the enemy of development, and of good governance. It must be got rid of,† says Pratibha Patil, India’s 12th president. Corruption within society hinders its ability to properly function and affects mankind. While it is in effect, corruption will continue to tarnish society’s mores. 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This new culture of individuals are free spirited individuals who want to be accepted as an Americans and exercise their constitutional rights. Not only is the world not acceptant of LGBT community most often the first sign of discrimination against these individuals start at home. Many cultures, races, and gender have battled it out on AmericanRead MoreThe Causes And Effects Of Poverty On Individuals And Communities Essay1950 Words   |  8 PagesThroughout our course, we have looked at the lives of those economically disadvantaged in our society. We have talked about the causes and effects of poverty on individuals and communities and looked at multiple in depth sociological studies. I have come to the conclusion that sociological research is not relevant until it is grounded in rigorous analysis that takes into account the complex nature of social categories. Likewise, sociological analysis means nothing in a vacuum. Its value lies in theRead MoreDescription And Definition Of An Individual, Group, Community2143 Words   |  9 Pagesresearch can either test or create theory; different types are better for producing rather than testing theories. Case studies aim to build theory rather than test it (Berg Lune, 2012). Case studies open the door to understanding how an individual, group, community etc. interacts with a certain event. Berg and Lune (2012) suggest that case studies allow researchers to observe shared and unique problem-solving techniques and how the case interacts, perceives and interprets the information when they

Underage drinking Free Essays

Underage Drinking underage drinkers drink to look cool and It may be the social thing to do at the latest party or even at home; feeling curious a teen may consume alcohol to tit in with their surroundings. This can be due to the fact that the minor could be pressured into drinking. With all the popular media hype about alcohol and especially during the Super Bowl; it Just shows minors that it is okay to participate in drinking and if they do, this great boost will occur. We will write a custom essay sample on Underage drinking or any similar topic only for you Order Now The other cause to these other Influences could have already had happened, such as the childhood experience being abused by the runken father or alcoholic mother who does not nurture her children. Underage drinking Is detrimental to the health of themselves and others whom they affect: It Is an ongoing problem that continues, with the number of students Increasing each year Drinking underage can be linked to advertising that is very persuasive to the minors. These advertisements, some say target children, but the alcohol companies deny. In efforts to prove the people wrong; alcohol companies have put forth their part into making an advertisement discouraging alcohol abuse. The advertisements ake the young minded minors to think drinking can put on physical attractiveness, It is fun, or gives special powers to make the person better at athletics. Some would soy the audience that Is targeted In the beer advertisements. such ds Bud Light, are Indeed minors, seeing an alcoholic beverage and having the appeal to take acuon are different. ne of the advertisements by Bug Light were shown on the super Bowl commercials ot people stranded on an island; they found a radio, but instead ot using it to find help, they found a cart of alcoholic beverages and showed them aving the best time on the island. The reality of this commercial is saying to teens, if you drink alcohol you will have the best time of your life. Especially, when those minors are being pressured into by their peers to take the shot, it makes the situation Into a more dangerous one. Having a party with friends Is one thing, but If that party host has access to their parents liquor stash It becomes d different party. â€Å"Rates are higher among 12th graders, with reporting at least one alcoholic drink during their lifetime, 43% reported at least one drink In the past 30 days, 28% reporting runkenness in the past 30 days, and reported daily use ot alcohol (Centers tor Disease Control and Prevention, 2008; Johnson et al. , 2009! ‘ (Song). These statistics are also closely related to my own experience, my own friends would come to the football game under the influence or go to the party this weekend which had alcohol. Drinking while in high school can also be lead to drinking in college, but the major dfference Is that alcohol is more demanding dt the college parties. Minor’s consequences on whom drinks can also Increase their risk of unhealthy outcomes; uch as fighting one another. which can lead to Injuries, reckless sexual behavior and drlvlng under the Influence. hile many do not have parents who have alcohol at their house, there are many ways ot obtaining alcohol by having take ID’s, by asking a stranger and giving them extra money for buying the booze for them; making college parties that much easier to obtain alcohol. â€Å"Researchers have identified a number of factors that contribute to adolescent alcohol use, including being male, having easy peers also drink alcohol† (Song). Minors rec eive biases messages about alcohol, it can e from the D. A. R. E program that educates the minors about the drugs and what it does to their bodies. The other messages could be from biased adults and popular media whom say one drink will not hurt, but the fact is that one drink can harm the body of the minor in psychological and physical ways. One of the counter arguments about underage drinking is lowering the drinking age to prevent binge-drinking at age 18 or 19 years old. â€Å"The problem is that underage drinking is now forced off campus, leading to â€Å"a culture of dangerous, clandestine binge-drinking† (Alcoholism Drug Abuse Weekly). Having the law as it is, makes the drinking go farther than the campus walls. If the age at which people are legal to drink is lowered, then the developing minds that are affected by the alcohol can reduce the minor’s chances of being successful. Having the age at 21 is good, not only does it prevent alcohol- related trauma, â€Å"But 10 percent of a state’s federal highway funds are cut if the state doesn’t mandate a drinking age of 21† (Alcoholism Drug Abuse Weekly). Popular media, community norms, and peer pressure, all have a fundamental root cause to hy adolescents drink at such an early age, it is because of their childhood experience. In order to be able to understand why college students are drinking at such an early age, analyzing how they were raised and their family life can be a big factor. One’s childhood experience can drastically take for the worst if their mother, father, or parental guardian is a drunk. Every night they would come home from drinking at the bar, see their child and tell them that everything is okay; the child would start to develop the idea that coming home drunk is an okay thing to do. The reason for the child’s drinking at an early age would be to cope with such a graphic image of their parent figure drinking and acting out violently towards their loved ones, â€Å"First, it created physical and emotional stress, which participants believed could be reduced through alcohol use. Second, victims of abuse began â€Å"to stop caring† about what happened to them or what people thought about their behavior. Third, many abuse victims absented themselves in order to escape the abuse, removing themselves to unsupervised or risky settings where they were offered, or it as easy to obtain, alcohol and drugs† (Rothman). The turn to alcohol is easy with a motive, such as lessening or not dealing with the burden put on the child through the traumatization. The risks to drinking can be the underdevelopment of the brain, although the changes are subtle, over a long period of time it can be noticeable. The liver and the growth hormones are affected by the consumption of alcohol at the early ages; they tend to produce a lot of liver enzyme, which is indicating some liver damage and throwing off the hormones of the adolescent’s puberty stage. With the umber of the population increasing, so does the student body, thus resulting in the pressures of drinking at an early age because of the ongoing problem with underage drinking. The cycle of underage drinking would occur, if the parents are young and are not ready to deal with a child; so when the child is growing the parents might be drinking because of the stress of dealing with the financial troubles if present. The problem on campus is not because the college students are doing it because they can, it is a variety of issues that causes them to take the drink at the college party. This problem is need of the utmost attention because it affects the student life on pressures of drinking or taking the load off. Its impact on the community is detrimental to their personal health, but also the safety of others due to the fact that driving under the influence can be fatal to not only themselves, but whom they cause harm to. Work Cited Rothman, Emily F. , Judith Bernstein, and Lee Strunin. â€Å"Why Might Adverse Childhood Experiences Lead To Underage Drinking Among US Youth? Findings From An Emergency Department-Based Qualitative Pilot Study. 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