IT402_Unit6_Assign1_.docx IT 402 Unit 6 Assignment 1 Purdue University Global IT 402 Consulting Skills The Enrons energy is established in 1985 and was merged between Houston Natural Gas Company and Omaha-bases Inte
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IT402_Unit6_Assign1_.docx IT 402 Unit 6 Assignment 1 Purdue University Global IT 402 Consulting Skills The Enrons energy is established in 1985 and was merged between Houston Natural Gas Company and Omaha-bases InterNorth Incorporated. One of the largest accounting firms at the time was the Arthur Andersen LLP, which also was the accounting firm for Enron and the helper of Enrons bad business practices. To increase the shareholders, Arthur Andersen categorized millions of dollars from creating false claims on the companys actual value. The SEC took notice when Enron has reported huge losses in the fall of 2001. Author Andersens in-house lawyers knew that with the losses shown by Enron, the SEC would come to investigate. Arthur Andersen advised the CEO David Duncan to all of the incrementing documents beforehand. Enrons top people being charged and Arthur Andersen was found guilty of obstruction of justice in the summer of 2002. (SEGAL, 2020). The Public Oversight Board was supervising the account fields at the time of Enron and Arthur Andersen case. Securities and Exchange commission took charge after the case against Enron and Arthur Andersen. The Public Oversight Board was dismantled allowing the Securities and Exchange Commission to take the charge of all the regulations within the accounting profession. After this the establishment of Financial Account Standards Board was made. The financial account standard brought in new rules for accounting which in the end forced many US companies to take. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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