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An Enron manual of ethics from July 2000, about a year before the company collapsed. Enron's complex financial statements were confusing to shareholders and analysts. [1]: 6 [10] When speculative business ventures proved disastrous, it used unethical practices to use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance.
Arthur Andersen LLP was an American accounting firm based in Chicago that provided auditing, tax advising, consulting and other professional services to large corporations. By 2001, it had become one of the world's largest multinational corporations and was one of the "Big Five" accounting firms (along with Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers).
The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, its audit firm. Enron is considered to be the largest bankruptcy reorganization in U.S. history, as well as the biggest audit failure. [13]
The firm's comeback has been orchestrated by Andersen, a tax business founded in 2002 by former employees from Arthur Andersen, the once-prestigious accounting firm and the parent company of ...
On this day in economic and business history ... On July 21, 2002, WorldCom declared what was at the time the largest bankruptcy in American history, with $107 billion in recorded assets. The ...
displaced by Colwell, "not capable of making aggressive accounting decisions" U.S. District Judge Sim Lake did not allow prosecutors to get into details about the transaction – year-end 1999 electricity trading deal with Merrill Lynch – that prompted J. Clifford Baxter (Enron's single suicide) to displace Curry for Colwell; Timothy Belden
In the long history of financial frauds, Enron ranks near the top of the list, with the once high-flying energy trading company suddenly unraveling in a web of lies and accounting sleight-of-hand ...
The PCAOB was created in response to an ever increasing number of accounting "restatements" (corrections of past financial statements) by public companies during the 1990s, and a series of high-profile accounting scandals and record-setting bankruptcies by large public companies, notably those in 2002 involving WorldCom and Enron, and the audit ...