Enron's demise. Briely discuss the following:
What did Enron use to hide its debt? What was the main thing that led directly to the downfall of Enron? What was the basic idea underlying Enronâs use of SPEs and why was this flawed?Could Raptor and the other SPEs have actually worked? Tell briefly why or why not? What is a âPonzi schemeâ? Say briefly how it works? What is the classic definition of âmaterialityâ? What is the basic difference of responsibility between a company executive and that companyâs auditor? Was Arthur Andersen aware of the use Enron was making of its SPE? Give two of the things that Arthur Andersen discussed during their âEnron Retention Meeting.â What is the difference between the appearance and the reality of independence? Which is essential for an accounting professional? What is the relation of this difference to Arthur Andersenâs distinction between the level and nature of fees? What is one good reason why even the appearance of lacking independence should be avoided? What are the two kinds of objectivity? What is the basic relationship between rules and principles? Briefly explain what Ken Lay meant when he said that Enron had a âreal time auditâ by Arthur Andersen all the time. Why is the concept of a âreal time auditâ problematic? What is the basic relationship between ethics and legality? What are the ethical considerations that bear upon document destruction? What was the purpose of the SPE called RADR, which was controlled by William Dodson and, vicariously, Michael Kopper? In what way could Enronâs actions justify its corporate culture being call a âculture of greedâ?
Enron's demise. Briely discuss the following:
What did Enron use to hide its debt? What was the main thing that led directly to the downfall of Enron? What was the basic idea underlying Enronâs use of SPEs and why was this flawed?Could Raptor and the other SPEs have actually worked? Tell briefly why or why not? What is a âPonzi schemeâ? Say briefly how it works? What is the classic definition of âmaterialityâ? What is the basic difference of responsibility between a company executive and that companyâs auditor? Was Arthur Andersen aware of the use Enron was making of its SPE? Give two of the things that Arthur Andersen discussed during their âEnron Retention Meeting.â What is the difference between the appearance and the reality of independence? Which is essential for an accounting professional? What is the relation of this difference to Arthur Andersenâs distinction between the level and nature of fees? What is one good reason why even the appearance of lacking independence should be avoided? What are the two kinds of objectivity? What is the basic relationship between rules and principles? Briefly explain what Ken Lay meant when he said that Enron had a âreal time auditâ by Arthur Andersen all the time. Why is the concept of a âreal time auditâ problematic? What is the basic relationship between ethics and legality? What are the ethical considerations that bear upon document destruction? What was the purpose of the SPE called RADR, which was controlled by William Dodson and, vicariously, Michael Kopper? In what way could Enronâs actions justify its corporate culture being call a âculture of greedâ?
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