Accounting Scandal Of Enron

The scandal of Enron shown in October, 2001 eventually resulted in bankruptcy of Enron Corporation, the American energy company based in Houston, Texas and the actual dissolution of Arthur Andersen which was one of five biggest audits and partnership of accounts department in the world. Being the biggest reorganization of bankruptcy in the American history at that time, Enron was quoted as the biggest control failure. Many registered assets and profit of Enron were inflated or even absolutely dishonest and not existing. One example of roguish reports was during 1999 when Enron promised to extinguish investments of Merrill Lynch & Co. with percent to show profit on its books. Are long and losses were placed in the enterprises created "at distance

HealthSouth was involved in corporate accounting scandal in which his founder, the chairman and the CEO, Richard M. Skrushi, were accused of the direction of employees, in a false manner report, considerably exaggerated profit of the company to equal hopes of the shareholder. HealthSouth accounting problems at first appeared at the end of 2002 after the executive director Richard M. Skrusha, sold $100 million in a stock how the company declared big loss. HealthSouth was accused by the American Commission on securities and the exchanges (SEC) of accounting scandal where the income of the company was in a false manner exaggerated for $1.4 billion. In 1996, allegedly ordered high-ranking officials of Skrusha and accountants to forge reports on profit of the company to equal hopes of investors and to control the price of the share of the company. Fraud lasted seven years. For some financial years the income of the company was overestimated by the whole 4700%. $1.4 billion make more than 10% of a total cost of property of the company. Once, the tax on the income of corporation of the company based on its roguish income were higher, than its actual

Raju's Ramaling the Former chairman of the company, was sentenced to seven years of imprisonment. The event which also call Enron of India, belongs by the time of 2009, Raju wrote the letter to securities and Exchange Council of India (SEBI) and shareholders of the company, having recognized that it operated profit of the company, and deceive investors. Nearly $1 billion, or 94% of the cash-book was fictitious. In the direct response to recognition investors lost just as RS of 14,000 crores ($2.2 billion) as actions in Satyam collapsed. Raju explained the reasons in the letter to make inflation as follows:" As patrons held small percent of the capital, caring that unsatisfactory work will lead to absorption, thus exposing an interval "." That began as an extreme interval between the actual operating profit and reflected in books of the accounts continued to grow for these years", Raju in the letter told. "It reached uncontrollable proportions as the amount of actions of the company grew