Assignment "The Downfall of Enron"
Background of the Enron Case: During the downfall of the Enron Corporation, Arthur Anderson, and Enron’s accounting firm, instructed its employees to destroy financial documents relating to Enron. On May 6, 2002 a charge of obstructing an official proceeding of The Securities Exchange Commission was filed against Arthur Andersen LLP. Hence, the term, “Whistle-blower,” was formed as well as the Sarbanes-Oxley Act which monitors the ethical and financial affairs of all business corporations.
Write a four to six (4-6) page paper in which you:
1. Determine the primary factors that contributed to the downfall of Enron’s financial practices.
2. If you had been assigned to defend Enron, justify the legality of its methods of handling its finances.
3. Differentiate the responsibilities of Arthur Anderson’s auditors from that of Enron’s executives.
4. Analyze the provisions of the Sarbanes-Oxley Act.
Analyze company policies to ensure compliance with key provisions of the major federal laws related to investor protection, equal employment opportunity, consumer protection, and environmental protection.