Enron Case

Jay King February 27, 2008 MB 234 Case Write-up a.The ethical dilemma face by the auditors is that Enron executives and leading executives from Arthur Anderson were pressuring them to win at all costs. The auditors at Arthur Anderson allowed its goals of generating tax income to interfere with its role of ensuring Enrons accounting accuracy. b.Yes, I do believe it is fair that Arthur Anderson was put out of parentage by the action at laws of just one audit partner in Houston, Texas, because a company should be held liable for any felonies within its corporation, particularly such(prenominal) an enormous misjudgment as the one by Arthur Anderson. Arthur Anderson concord with Enron to make it look as if Enron had more tax than it real did, so that stockholders would value the stock more. Because Arthur Anderson committed such a blatant act of mis imprecate, even if its companies were open, people would not trust them doing the auditing. c.Because the consulting f irm was shut down, the $27 million take in in consulting fees from Enron was most likely money the firms were trying to hide. This action is wrong by both Enron and Arthur Anderson. d.

The sale of the consulting practice by Arthur Anderson did not allow the company to avoid conflicts of interest because they heretofore were running(a) both internal and external audits, so the external audits were checking the braid of the internal audits. e.As a shareholder of a company, you would not be happy with a nice guy auditor. Instead, youd ask someone who would tell it like it is and not be mysophobic to shake t hings up and let his views be known. The ! implicated ships company who would be happy with the description of David Dun stack would be Enron, which was smell for a pushover. f.While most auditing firms are LLC or LLP, Arthur Anderson and David Dun stack can be held liable to some degree for the obstruction of justice they committed. However, most of the liability would still fall on Enrons shoulders. g.No, it wasnt...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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