Case 4.1 Enron Corporation and Andersen,LLP
University of Phoenix
Case 4.1 Enron Corporation and Andersen, LLP
What were the business risks Enron faced, and how did those risks increase the likelihood of material misstatement in Enron's financial statements?
Enron's business risks involved risks such as fraud; however, their ultimate failure was when they entered into aggressive transactions involving special purpose entities (SPE's). The problem was that the accounting practices were questionable when they treated loans to look like revenue and did not record them as liabilities, such as notes payable. This risk is that they did not show the liabilities on the financial statements and misled creditors, investors, and customers into believing that they were making more money then...
Excerpt from file: Case4.1EnronCorporationand Andersen,LLP UniversityofPhoenix ACC492 Case4.1EnronCorporationandAndersen,LLP WhatwerethebusinessrisksEnronfaced,andhowdidthoserisksincreasethe likelihoodofmaterialmisstatementinEnronsfinancialstatements?
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