Explore BrainMass
Share

Explore BrainMass

    Enron's Scandal and Accounting Ethical Breach

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What were the causes of Enron's scandal and the accounting ethical breach, as well as the impact to the organization related to ethical breach?

    © BrainMass Inc. brainmass.com October 10, 2019, 6:55 am ad1c9bdddf
    https://brainmass.com/business/management-accounting/enron-s-scandal-and-accounting-ethical-breach-561519

    Solution Preview

    There were several different causes that led to the fall of Enron. Basically, management became so involved in greed and deceit that fraud overtook the company's executive management system. As it did, the company produced financial statements to hide their frauds that were very complex in nature. One of the main problems was that they created accounting transactions that were very involved. They attempted to fool internal auditors with these transactions. As their accounting transactions grew even more complex and subsequent forms of fraud took place, their financial statements then grew out-of-control in complexity and information that was contained within the financial statements, as a way to try and justify the transactions that ...

    Solution Summary

    This solution discusses the main causes of the Enron scandal and the accounting ethics breach. A thorough discussion is provided.

    $2.19