ipl-logo

Enron Political Parties

888 Words4 Pages

of the two main political parties, Labor and Conservatives. The Labor party was accused of taking Enron’s money in return for access to government ministers. The party had apparently changed its policy on gas-fired power stations after being lobbied by companies, including Enron. This was seen by some as possible evidence of Enron's influence on government policy. However, the UK Government insists its links with Enron have neither changed policy nor bought access to ministers. A second front of allegations emerged over Labor’s close ties with Andersen, Enron’s accountants, a company barred from government work for failing to prevent the DeLorean car company collapse. This ban was later lifted, which has caused the rise of awkward questions …show more content…

Lay took up the reins at Enron in 1986 after it was formed from the merger of two pipeline firms in Texas and Nebraska. Prior to Enron’s collapse, he was credited with building Enron's success. Lay resigned as CEO in December 2000, and was replaced by Jeffrey Skilling. In August 2001, he resumed leadership after Skilling resigned. Lay resigned again in January 2002 after becoming the focus of the anger of employees, stockholders and pension fund holders who lost billions of dollars in this disaster.
Jeffrey Skilling
Former Chief Executive, President and Chief Operating Officer. Skilling joined Enron in 1990 from the consultancy firm McKinsey, where he had developed financial instruments to trade gas contracts. Prior to becoming Chief Executive in February 2001, Skilling was President and Chief Operating Officer of the firm. Skilling was also seen as a key architect of the company’s gas-trading strategy. Skilling resigned his post as Enron’s chief executive in August 2001 without a pay-off. …show more content…

This means that Andersen’s job was to check that the company’s accounts were a fair reflection of what was really going on. As such, Andersen should have been the first line of defense in the case of any fraud or deception. Arguments about conflict of interest had been thrown at Andersen since they acted as both auditors and consultants to Enron. The company earned large fees from its audit work for Enron and from related work as consultants to the same company. When the scandal broke, the US government began to investigate the company’s affairs, Andersen’s Chief Auditor for Enron, David Duncan, ordered the shredding of thousands of documents that might prove

Show More
Related

  • Ms. Fortin Case Summary

    312 Words  | 2 Pages

    Her supervisor claimed that customers said they received poor customer service from Ms. Fortin. In 1994, the company decided to restructured its company finance and a new manager took over Ms. Fortin’s department. Staff reduction was part of the change; consequently, Ms. Fortin was one of the first employee to get laid off. Unfortunately, when the new supervisor decided to laid off Ms. Fortin, she had no prior knowledge of Ms. Fortin’s union activity.

    Read More

  • Summary Of Stories That Changed America By Carl Jensen

    1184 Words  | 5 Pages

    The tradition begun by the journalists in Jensen’s book still continues today. Greg Palast is one such journalist who is following in the footsteps of the muckrakers. He has been called the “most important investigative reporter of our time” by The Guardian and has been responsible for writing front page stories for influential news outlets such as “BBC Television Newsnight, The Guardian, Nation Magazine, Rolling Stone and Harper's Magazine”. His area of expertise is corporate fraud and he has gone undercover to conduct his investigations on five continents. He is responsible for writing influential stories such as “BP's Deepwater Horizon blow-out”, the U.S. role in the coup against Hugo Chavez, Enron’s attempt to buy favors from the British government, and the U.S. Presidential election theft in 2000 in

    Read More

  • What Caused The Sarbanes-Oxley Act Of 2002

    71 Words  | 1 Pages

    The financial scandals in early 2000s caused the Sarbanes-Oxley Act of 2002 to be created. Enron, WorldCom and the accounting firm, Arthur Andersen, to intentionally mislead their shareholders by exaggerating their profits and understating their expenses. The scandals had raised the importance of internal control for enhancing corporate governance. Therefore, the government established the SOX to protect the interest of the investors and employees and to monitor the companies and auditors.

    Read More

  • How Did John D Rockefeller Affect America

    606 Words  | 3 Pages

    After the trial Rockefeller was charged with many things and Standard Oil was broken down from a monopoly and Rockefeller was forced to step down was the

    Read More

  • What Is Leslie Fay Accounting Fraud

    709 Words  | 3 Pages

    Paul Polishan claimed Donald Kenia committed the large fraud scandal. After the fraud scheme was publicly disclosed, Leslie Fay hired Arthur Andersen & Co. to investigate their financial statements for the previous years. During the investigation, John Pomerantz put Paul Polishan on temporary paid leave. Prior to Arthur Andersen & Co taking over Leslie Fay’s audits, BDO Seidman was their audit firm since the mid-1970s and issued unqualified opinions each year for Leslie Fay’s financial statements. BDO Seidman shortly withdrew their audit opinions on Leslie Fay’s 1990 and 1991 financial statements after the fraud claims were disclosed.

    Read More

  • Enron Analysis Essay

    887 Words  | 4 Pages

    Enron Analysis Enron is a great play which presents a dry story about business in a colorful and cartoonish way and impressed me with a variety of elements, including video, music, choreography, and dance. This is a play depicts the spectacular collapse of a Texan energy giant-Enron. As an audience, I witnessed how a business empire was built on shadows, accruing debts of 38 billion dollars and finally going bust in this two hours and thirty minutes play. In the following passage, I will describe, analyze, and interpret this play both about its script, including characters and plots, and its production, such as the videos, stage props and customs.

    Read More

  • Income Smoothing Case Study

    1491 Words  | 6 Pages

    This proves that throughout the case, Cendant Corporation wasn’t acting fully ethical nor with the desired fiduciary actions to their investors and the auditing team in this case being Ernst&Young. Aside from the trust being broken apart between both, there was never a sign of an internal control inside Cedant. Therefore, there shows that the corporate governance for Cendant Corporation didn’t have signs of existence as well. Most frauds that were occurring before the implementation of the SOX-2002, had top management such as in Cendant that didn’t have care for the ethical performances as much as in today’s corporate world with more regulations in hand by the government. At the end, Cendant had filings against them concerning their corporate governance

    Read More

  • Eileen Foster Case Summary

    428 Words  | 2 Pages

    Eileen Foster was the Executive Vice President of Fraud Risk Management at Countrywide, and later served in the role of Senior Vice President of the Mortgage Fraud Investigation Division at Bank of America after the two companies merged (Foster, n.d.). It was her responsibility to investigate mortgage origination fraud and reporting suspicious activity to regulators and the company’s Board of Directors. After several years of seeing a lot of suspicious activity and blatant acts of fraud she found that the company was playing party to this activity. Any employee who reported fraud and wrongdoing to Employee Relations were being transferred, demoted, harassed or terminated. When Foster reported her concerns to Countrywide’s Internal audit to investigate, the company not only chose to conceal her allegations from Bank of America, but it also directed employee relations to investigate Foster for wrong doing.

    Read More

  • Essay On America's Two-Party System

    922 Words  | 4 Pages

    In America, we have adopted a two party system when it comes to electing political officials. Throughout the years, third parties have come and gone. If a third party gains enough support, it is typically absorbed into one of the major political parties; whereas if it does not gain enough support it eventually peters out. Examples of third parties that have either merged into a major party or failed include: The Populist party which failed, the Greenback party merged into the Democratic party, and the Whig party was taken in by the Republican party. Each time a third party gains traction it is adopted by one of the two major parties returning to a two party system (The Bemidji Daily Pioneer).

    Read More

  • Similarities Between John D. Rockefeller And J. P. Morgan

    499 Words  | 2 Pages

    Amongst the urbanization and technological advances during the Industrial Revolution emerged the titans of the industry. Fronting some of these major corporations were business leaders John D. Rockefeller and J. P. Morgan, who were most notable for the immoral practices and ruthless tactics they used to gain their wealth. On the contrary, philanthropist Andrew Carnegie headed the U.S. Steel Corporation, where he earned his millions through truthful and legal methods, making both viewpoints on business leaders valid. Through criminal and morally questionable schemes, the oil industry’s tycoon Rockefeller and financer J.P. Morgan corruptly made themselves a fortune, earning the label as “greedy and unscrupulous”, but not all industry leaders

    Read More

  • Summary: Groupon Accounting Scandal

    275 Words  | 2 Pages

    This questionable accounting practiced raised more questions by regulators and media outlets who worked persistently to expose Groupon’s accounting practice. Groupon believed that

    Read More

  • Pros And Cons Of Executive Compensation

    2411 Words  | 10 Pages

    Martin J. Sullivan, AIG’s CEO, who collected a severance package of nearly $50 million when he was ousted at a board meeting on June 15, 2008, when it came under investigation by the

    Read More

  • Professional Scepticism In Auditing

    860 Words  | 4 Pages

    Professional scepticism is an important part of auditing as it necessitates the auditor exercising their qualified judgement in dealing with occurrences and circumstances of a countless number. (Auditing and Assurance Standard Board, 2012). Since the global financial crisis, there has been increasing importance placed on applying professional scepticism and many auditors have been criticised for not using scepticism in their valuation and assessments of factors like going concern issues, fair value judgements and related party transactions. (Association of Chartered Certified Accountants, 2015). Additionally, the importance of professional scepticism is essential in reducing the number errors found in financial statements.

    Read More

  • Bernie Ebber Case Study

    911 Words  | 4 Pages

    Ebbers leadership style changed from ethical to unethical during the downturn of the stock market and the effects it had on WorldCom shares. Ebber leadership style created an environment that left for little room for error. During telecommunications stock downturns Ebber was unable to come up with a strategy that would turn things around. During the initial phases of the Commission investigation into WorldCom’s accounting practices, Ebber was questioned concerning several low-interest loans he acquired from the board of directors. Shortly after Ebber was forced out by outside board members.

    Read More

  • Ethics And Moral Issues In The Enron Scandal

    931 Words  | 4 Pages

    Kenneth Lay, Mr. Jeffrey Skilling and the company CFO, Mr. Andrew Fastow .The management level of Enron Corporation had misconduct the code of ethics and fail to performing the duties of a corporation which is telling the truth of the situation of a corporation .Instead , they tried try to hide the truth of their financial status and create a false prosperity situation and make the public believe on them in order to support their shares prices . The misconduct of code of ethics by the management level by Enron corporation has led to the another question – The ultimate responsibility of a corporation towards society ? The ultimate responsibility of a corporation is to gain profit or become a stable economic unit ?

    Read More

More about Enron Political Parties

Open Document