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    Need help with a paper describing the demise of Enron Corpor

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    Need help with a paper describing the demise of Enron Corporation and WorldCom.

    Identify major factors that led to the dissolution of Enron Corporation and WorldCom.

    Explain specific ethical violations in accounting practices at Enron Corporation and WorldCom.

    Describe the role of business ethics in strategic financial planning.

    Cite readings and at least one other source, including the Internet.
    Format your paper consistent with APA guidelines.

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    Solution Preview

    Identify major factors that led to the dissolution of Enron Corporation and WorldCom.

    The major factor by far that ended Enron was their use of SPE's. This literally folded the company. There were so many frauds taking place, and the majority of them started with their illegal SPE use. Tied in with the illegal SPE use was the auditing firm, who was immediately held accountable and scrutinized. Year after year, Enron auditors came through with audit reports that showed no major irregularity was taking place, yet when the company collapsed, the loss was so monumental that it actually shook the economy. The auditors were being paid millions of dollars per year by Enron in consulting fees. Auditors did not want to lose the money that they were collecting in fees for consulting, so they turned their heads on the fraud that was explosively brewing inside of the company's accounting data. When we look in retrospect, we see that the Enron and WorldCom frauds were so massive that the Sarbanes-Oxley Act was created as a reaction to these main two accounting scandals - they were so devastating that accounting regulation was almost immediately initiated to try and prevent the same type of collapse caused by fraud from happening again. One of the other main issues with Enron is that the top executives became so greedy, and began to live such luxurious lifestyles, that they immediately fired any individual that began to notice what was taking place. The other main point with this case ...

    Solution Summary

    Need help with a paper describing the demise of Enron Corporation and WorldCom.

    Identify major factors that led to the dissolution of Enron Corporation and WorldCom.

    Explain specific ethical violations in accounting practices at Enron Corporation and WorldCom.

    Describe the role of business ethics in strategic financial planning.

    Cite readings and at least one other source, including the Internet.
    Format your paper consistent with APA guidelines.

    $2.19