Rise and Fall of the Enron Company - Essay Example

The paper "The Rise & fall of a Billion-Dollar Company Enron" highlights that the failure of the management of Enron caused the mismanagement of resources and last fall of Enron.... Kenneth Lay, the former chief executive officer of the said company became CEO.... The company switched its business from pipeline to other lucrative businesses.... In the year 1999, the company introduced its broadband services named Enron Online, which was a website for trading commodities that enabled the company to acquire the largest position in the globe....

Independence means that the auditor can freely issue a qualified opinion, adverse opinion, disclaimer opinion without being influenced by many factors.... The auditors auditing standard no.... 2 states that independence in mental.... ... ... The factors include intimidation, self -interest and the like....

astow was He was found guilty for complex web of off-balance sheet entities that were used to conceal the losses of the company.... Gilsan was the senior official at the finance division of the company.... Fastow to establish operation of byzantine series of partnership affiliation with the company.... The company reports about 425 million in his earning.... After attaining Masters in economics from the University of Maryland he worked in the security and exchange company....

This paper "The Story of the enron Europe Company" focuses on the fact that located at London's exclusive Grosvenor Place, the headquarters for Enron Europe featured nearly 30 million dollars worth of the very latest and most sophisticated telecommunications equipment.... Pre-collapse, the company's business throughout Europe was growing rapidly, with 'per day' natural gas and power volumes more than doubling from 1999 to 2000.... The company was an active player in Britain, France, Germany and Switzerland....

Many sectors such as regulators, government, financiers, and academics have raised numerous issues, particularly regarding the rise and fall of Enron recently.... Many sectors such as regulators, government, financiers, and academics have raised numerous issues, particularly regarding the rise and fall of Enron recently.... The rise and collapse of high profile business failures such as Enron, Tyco, Parmlat and Worldcom because of financial and accounting issues has been a subject of great discussion....

Though there have been many explanations found floating in the intellectual space, yet the most appealing and logically sound explanation relates to corporate governance in the banking sector which led to such a catastrophic fall of the company.... Enron is one such company that faced the wrath of flawed banking policies and thus led towards bankruptcy.... Firstly, the firm focused and invested in the pool of 'financial engineers' which imply that this qualified personnel would engage in research where they would be able to twist numbers and reflect positive trends for the company....

Off-balance sheet assets and liabilities are those that are not included in a company's balance sheet (Hillier, 2010).... The assets belong to the clients but managed by the company.... Therefore, the company does not record the assets in its balance sheet although it provides management and depository services for them.... Such securitized assets are only disclosed as notes in the financial statements of the company.... When assets or liabilities are not presented on the balance sheet, financial analysts and other users of financial reports of companies will not be able to determine the amount of capital employed or the real gearing ratio of the company in order to correctly assess the risk of the company....

his report analyses the chronological events of the Rise and Fall of the Enron Company.... Important lessons on the need for professionalism in accounting are learned from the enron case.... More stress is on accounting professionals and their role in the fall of Enron.... Accounting unprofessionalism that led to the fall of Enron are determined and discussed.... The reasons as to why checks and balances could not prevent the fall of Enron are analyzed....