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Question: Enron Bankruptcy React to Video found here: https://www.youtube.com/watch?v=H2f7FunDuTU The teach...

Enron Bankruptcy

React to Video found here:

https://www.youtube.com/watch?v=H2f7FunDuTU

The teacher wants me to watch the video and then write what I learn from the video. She Wants me to write my ideas after watching the video.I watch the video several times but I can't fix out what I should write.

Please I need your help

Type in word document Don't use handwriting, please

Thank you for help!

Explanation / Answer

The main ethical violations done by Enron managers are the following:

1) the neglect of managerial integrity capacity is the moral root of Enron's legal and financial violation.

2)Enron's balance sheet was window dressed by not showing the true picture of its assets and liabilities.Some of its debt was recorded in the balance sheet of its SPV and was hidden from the analysts and investors.

3)Enron's accountant Arthur Andersen was the major cause of its collapse because of the conflict of interest between auditor and consultant.

4) Enron's managers denied the serious issues of the company as they were more concerned with their personal gain .

5)The CEO and CFO of Enron played major role in the scandal.They committed securities fraud and conspiracy to inflate profit and violated accounting laws and SPE laws.

Thank you.

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