Enron: An Extended Case Study

Slides:



Advertisements
Similar presentations
Professor: Clive Vlieland-Boddy
Advertisements

Auditing Research: Past, Present & Future Arnie Wright.
© 2007 PROSKAUER ROSE LLP® SARBANES-OXLEY ACT OF 2002 Presented by: Julie M. Allen
# e E&Y Global Audit Methodology: Responding to the New Environment University of Illinois at Urbana-Champaign March 10, 2005 University of Illinois at.
Forces of Change Don H. Hansen Health Care Services Partner
Case 6.1 Enron Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill.
Arthur Andersen & Co. and Enron Scandal Emily Thomas, Sam Glover, Brett Herron.
By Aleksandra Whistle, Rachel Davis and Jie li
The Role of the Public Accountant in the American Economy.
Sarbanes Oxley Act. WHY? Public Company Accounting Reform and Investor Protection Act of 2002 Response to a number of major corporate and accounting scandals.
New Audit Risk Standards Are You Ready? John P. Langan, CPA Principal in Charge Public Service Group Metro, DC Office LarsonAllen LLP.
Understanding the Client and General Planning
5-1 McGraw-Hill/Irwin ©2002 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 5 Audit Planning.
Sarbanes Oxley Act. WHY? Public Company Accounting Reform and Investor Protection Act of 2002 Public Company Accounting Reform and Investor Protection.
Implementing and Auditing Ethics Programs
The 30,000-foot View of Financial Auditing. Financial Statements -Income Statement -Balance Sheet -Cash flow Statement -Notes to F/S Audit Opinions -Financial.
PCAOB Historical Perspective St. Louis University Presented by: Jim Castellano, CPA Chairman, RubinBrown LLP March 2, 2010.
Legal Liability of CPAs Chapter 4. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-2 Primary Sources of CPA Liability.
Nexia International Audit Forum Sharing our strengths to build quality.
Chapter 2 The Financial Statement Auditing Environment McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
KPMG: Motivation for Fraud RYAN BURNETT CAITLEN EIBECK MIKE DAVIS ACCTG PENNSYLVANIA STATE UNIVERSITY PROFESSOR IZZO 3/1/2015.
© The McGraw-Hill Companies, 2010 The Financial Statement Auditing Environment Chapter Two.
Signed into law on July 30, 2002 Response to highly publicized corporate scandals Provisions affect corporate governance, accounting, and auditing Purpose.
Finance for Non Finance Directors Master Class, Conducted by Dr Sunder Ram Korivi NMIMS [Deemed University]
Securitization Tested? The Enron Disaster and Beyond Kellogg School of Management Securitization Colloquium May 27, 2003.
Welli Multi Corporation Berhad
PCAOB Historical Perspective St. Louis University Presented by: Jim Castellano, CPA Chairman, RubinBrown LLP April 14, 2008.
ACCOUNTING AND FINANCIAL RESPONSIBILITY IN STRATEGIC PLANNING By Charles D. Little, Ph.D.
  An ex-employee at Enron, he was been hired by Enron 9 months before it was collapsed.  Author of the book “Anatomy Of Greed : Unshredded Truth from.
C ENTURY 21 A CCOUNTING © South-Western, Cengage Learning C H A R A C T E R C O U N T S CHAPTER 1 Accounting Scandals Rock the Financial World.
AUDIT COMMITTEES کمیته های حسابرسی. مطلب تویی طالب تویی، هم منتها، هم مبتدا خورشید را حاجب تویی، امید را واجب تویی.
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 2-1 Chapter Two The Financial Statement Auditing Environment.
Case 2.4 Enron: Quality Assurance
PCAOB Historical Perspective St. Louis University Presented by: Jim Castellano, CPA Chairman, RubinBrown LLP April 13, 2009.
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 2-1 Chapter Two The Financial Statement Auditing Environment.
Research in Financial Reporting, Auditing and Governance Professor Chan-Jane Lin GMBA Thesis Workshop Dec 8, 2015.
Finance 590 Enterprise Risk Management Steve D’Arcy Department of Finance Lecture 6 Integrated ERM Risk Metrics and Industry Examples April 26, 2005.
Copyright © Cengage Learning. All rights reserved Why Accounting Information Is Important Recent accounting problems for corporations and their auditors.
Enron Fortune 500 company Largest power and natural gas company Revenue- $100 bn Dhabol power contract in India suddenly reported losses of.
© 2003 by the AICPA SAS 99: Consideration of Fraud in a Financial Statement Audit.
Understanding the Client’s Business and Industry
Case 4.3 The Baptist Foundation of Arizona: The Whistleblower Hotline Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution.
Enron: Audit Documentation
FIN 590 help A Guide to career/Snaptutorial
The Financial Statement Auditing Environment
Enron: Presentation and Disclosure of Special Purpose Entities
The Baptist Foundation of Arizona: The Conservatism Constraint
Legal Liability of CPAs
ACCT 530 Competitive Success/snaptutorial.com
ACCT 530 Innovative Education--snaptutorial.com
AC 557 Competitive Success-- snaptutorial.com
ACC 491 Competitive Success/snaptutorial.com
FIN 590 Competitive Success-- snaptutorial.com
ACCT 530Competitive Success/tutorialrank.com
AC 557 Education for Service-- snaptutorial.com
FIN 590 Education for Service-- snaptutorial.com
ACC 573 NERD Perfect Education/ acc573nerd.com.
ACCT 530 Education for Service-- snaptutorial.com.
ACCT 530 Education for Service tutorialrank.com. ACCT 530 Week 1 Case 1-8 A Faculty Budget (2 Papers) For more course tutorials visit
ACC 491 Education for Service/tutorialrank.com
ACC 491 Education for Service/snaptutorial.com
FIN 590 RANK Education for Service-- fin590rank.com.
AC 557 Teaching Effectively-- snaptutorial.com
ACCT 530 Teaching Effectively-- snaptutorial.com.
FIN 590 Teaching Effectively-- snaptutorial.com
AC 557 Inspiring Innovation-- snaptutorial.com
ACC 491 Teaching Effectively-- snaptutorial.com
FIN 590 Education for Service-- tutorialrank.com
FIN 590 Inspiring Innovation-- snaptutorial.com
Investments - Background and Issues
Presentation transcript:

Enron: An Extended Case Study Jim Rothwell Assistant Professor of Accounting Hickingbotham School of Business Ouachita Baptist University

The Crooked E: Coincidence or Prophecy ? JAMES NIELSEN/AFP

Questions ? What happened within the company? What was the corporate environment and culture of the company? Who were the major players and their roles? What “red flags” were there for analysts, auditors, and others to observe? What accounting and auditing issues arose within the company? How did the Enron scandal impact the accounting profession? What did we learn from Enron?

Activities View the movie “The Smartest Guys in the Room.” View the movie “The Crooked E: The Unshredded Truth about Enron.” Read the book “The Smartest Guys in the Room.” Read the book “Anatomy of Greed.” Research the financial statements of Enron from 1995-2002 Create a timeline of the major events related to Enron from 1995-2002 Create a list of the major players and their roles in the Enron scandal and collapse. Identify the “red flags” of fraud that were evident within the Enron organization, culture, structure, and environment.

Enron Portfolio Major events timeline List of major players and roles Financial statement analysis and summary “Red Flags” paper Impact on the accounting profession paper Role of Arthur Andersen “What Did We Learn?” paper (personal reflection) Enron Quiz Questions

Accounting and Auditing Issues and Concepts (Cont.) Mark-to market SPEs (off-balance sheet financing) Impact on the profession Government intervention

Accounting and Auditing Issues and Concepts (Cont.) Impact on the profession Collapse of Arthur Andersen Sarbanes- Oxley PCAOB Ethics Accounting firm Client Legal Liability Social Responsibility Evidence and documentation

Accounting and Auditing Issues and Concepts (Cont.) Social Responsibility Evidence and documentation Audit Planning Understanding the client – corporate culture Understanding the industry/market Risk assessment Fraud risk factors Internal Control Reporting Issues

Current Status Enron Arthur Andersen Legal issues and court cases Former executives Employees Arthur Andersen

Resources “The Smartest Guys in the Room” – DVD (video) The Smartest Guys in the Room: The Amazing Rise and the Scandalous Fall of Enron– Book (McLean and Elkind) “The Crooked E: The Unshredded Truth about Enron” – DVD (video) Anatomy of Greed – Book (Cruver) SAS 99: Consideration of Fraud in a Financial Statement Audit Other articles, presentations, literature, etc.