Analysis of the Enron/Arthur Anderson Scandal

Enron and Arthur Anderson are both industry giants. Enron, a Texas-based energy trading company, is rapidly expanding both in the domestic market and in the global market. Arthur Anderson, LLC. Anderson, headquartered in Chicago, is one of the top five accounting offices. But their means to achieve this position became doubtful and eventually led to their death. Enron used what is commonly called "creative" accounting, so that they recorded record profits.

Enron began living in 1985 and seems to be a nova in the business world. Along with the accounting firm Arthur Anderson, he became one of the biggest accounting scandals in the history of Enron. In addition to many illegal acts during the increase and decrease of Enron, there are still many moral dilemmas. In this article I will explain the history of the company, the actual crisis within Enron, and how the company responds to the scandal. Enron scandal is the biggest bankruptcy in the history of the United States and 4,000 employees are out of work. If it turns out that there is a problem with Enron's bookkeeping, it will take action on behalf of the US Securities and Exchange Commission. By 31 October 2001 the survey was upgraded to a formal investigation and Enron filed bankruptcy on 2 December 2001. This event will always be unforgettable as one of the most devastating events in the financial world.

In addition to being the biggest bankruptcy restructuring in the history of the United States, the Enron scandal is undoubtedly the biggest audit failure. It involved Enron and its auditor Arthur Andersen's fiscal scandal. And it was revealed at the end of 2001. This scandal led to the dissolution of Arthur Andersen, one of the top five accounting firms in the world. After a series of disclosures, including informal accounting procedures throughout the 1990s, Enron applied for bankruptcy protection in December 2001.

Enron scandal, a series of events, resulted in the bankruptcy of Enron, a US energy, commodity and service company, and the dissolution of Arthur Anderson law firm, one of the world's largest auditing and accounting firms. The collapse of Enron over $ 60 billion in assets involves one of the largest bankruptcy filings in the history of the United States and creates many controversies and legislation aimed at improving accounting standards and practices, and the impact of the sustainable financial world It was.