About eron company colapse the major issue concerning this, Ask an Expert

Management Studies

About Eron company colapse. The major issue concerning this case is that from 1996 to 2001 Enron was reporting high profits to its stockholders at the same time when high debts and losses were hidden by the CEO, internal and external accountants (external accountants who worked for a private company called Arthur Andersen), and others inside the company. In addition, false income statements were used to manipulate its stock price. Questions:

a) What were the responsibilities of the accountants at Arthur Andersen when they were working for Enron? Why?

b) Should these external accountants have blown the whistle on Enron’s unethical accounting practices (but legal at that time)? Why?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91988197

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