By: Lee Ann Obringer. The company branched into many non-energy-related fields over the next several years, including such areas as Internet bandwidth, risk management, and weather derivatives a type of weather insurance for seasonal businesses. Although their core business remained in the transmission and distribution of power , their phenomenal growth was occurring through their other interests. Fortune Magazine selected Enron as "America's most innovative company" for six straight years from to Then came the investigations into their complex network of off-shore partnerships and accounting practices. The Enron fraud case is extremely complex.
Two Forensic Accounting Case Studies
Enron Scandal: The Fall of a Wall Street Darling
Through all five seasons of this show, accounting fraud has been prevalent in one form or another: financial statement misrepresentation, tax fraud, and money laundering. We will examine each throughout this article. For a bit of background, the show centers on the life of Walter White, Sr. His wife, Skyler White portrayed by Anna Gunn , is pregnant with and later gives birth to their second child; their first child is a teenager with a mild case of cerebral palsy. Skyler takes a job as a bookkeeper with an old employer, Beneke Fabricators, to help make ends meet when Walt begins cancer treatments that are not covered by his health insurance. She objects at first, but later agrees to be a willing participant in the scheme.
Accounting Fraud Case Study
The fated company's collapse affected thousands of employees and shook Wall Street to its core. Also difficult to fathom is how its leadership managed to fool regulators for so long with fake holdings and off-the-books accounting. Lay quickly rebranded Enron into an energy trader and supplier. Deregulation of the energy markets allowed companies to place bets on future prices, and Enron was poised to take advantage.