Enron’s Questionable Accounting Practices

Enron used quintuple strategic partners to help cover up their accountancy escapes. Houston law firm Vinson Elkins go through client was Enron. The law firm wrote popular opinion letters supporting the legality of the deals Enron was making even though they were illegal. Additionally, Arthur Andersen LLP was Enrons auditor. much than 100 employees at Arthur Andersen were dedicated to Enrons account. The firm was a major care partner of Enron and some Arthur Andersen executives real jobs with Enron. any(prenominal) count there was a encroach of interest.It is also seed Andersen was influenced to destroy auditing documents because of the large consulting fees Enron pay 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 win in 1999 through the sale of Nigerian Barges. Andrew Fastow, Enrons Chief Financial Officer, is believed to be the genius behind the pa rtnerships used to spread over the $1 billion debt that led to Enrons bankruptcy.He defrauded Enron and its shareholders to make Enron look more profitable than it really was (Castalar Articles,2005). Castalar Articles (2005) says, People mother expound the organizational culture of Enron as existence arrogant. Enrons compensation plans seemed less have-to doe with with generating profits for shareholders than with enriching officer wealth. Enrons corporeal culture reportedly encouraged flouting or even breaking the rules. Enrons focus shifted from operative hard and being successful, to taking compendious cuts to stay successful.Former CEO Jeffrey Skilling is seen as the mastermind behind Enrons fraudulent accounting. 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 union disclosed its financial troubles. I hold it is easy to say what we would have thro ugh in this situation. We would all like to believe we would have done the right amour and report the company and its CEO as well as the CFO. I bang 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 sweep things under the rug, destroyed documents or accepted bribes. I do not believe this behavior helps anyone in the end. If there would have been some honest reporting and accounting the company would have most liable(predicate) been successful. However, due to greed and selfishness the company was set into collapse. Source Castalar articles. (2005). Retrieved from http//articles. castelarhost. com/enron_questionable_accounting_leads_to_collapse. htm