Enron’s Questionable Accounting Practices

Enron used multiple strategic partners to help cover up their news report schemes. Houston law firm Vinson Elkins top client was Enron. The law firm wrote picture letters supporting the legality of the deals Enron was making even though they were illegal. Additionally, Arthur Andersen LLP was Enrons take stockor. More than 100 employees at Arthur Andersen were dedicated to Enrons account. The firm was a major business partner of Enron and some Arthur Andersen executives accepted jobs with Enron. Some see there was a conflict of interest.It is too believed Andersen was influenced to destroy auditing documents because of the large consulting fees Enron paid them. Also, Merrill Lynch, one of the largest investment banking firms, was also a contributor. They reportedly helped in a scheme of Enrons to improperly record their earnings in 1999 by means of the sale of Nigerian Barges. Andrew Fastow, Enrons Chief Financial Officer, is believed to be the plan behind the partnerships u sed to hide the $1 billion debt that led to Enrons bankruptcy.He defrauded Enron and its shareholders to base Enron look more profitable than it really was (Castalar Articles,2005). Castalar Articles (2005) says, People constitute described the organizational ending of Enron as being arrogant. Enrons earnings plans seemed less concerned with generating profits for shareholders than with enriching officer wealth. Enrons corporate culture reportedly encouraged flouting or even breaking the rules. Enrons focus shifted from working hard and being successful, to taking short cuts to stay successful.Former CEO Jeffrey Skilling is seen as the mastermind behind Enrons fraudulent report. Skilling has been quoted as saying Enron could make a kazillion dollars in a new accounting scheme. He is also reported dumping 39 percent of his Enron stock before the partnership disclosed its financial troubles. I think it is easy to say what we would hold in do in this situation. We would all l ike to believe we would have done the right thing and report the social club and its CEO as comfortably as the CFO. I know that I would have not stayed with a company I thought was acting unethically.If I had been hired to audit Enron, I would certainly not have swept things under the rug, done for(p) documents or accepted bribes. I do not believe this bearing helps anyone in the end. If there would have been some honest reporting and accounting the company would have most likely been successful. However, due to greed and selfishness the company was driven into collapse. Source Castalar articles. (2005). Retrieved from http//articles. castelarhost. com/enron_questionable_accounting_leads_to_collapse. htm