The America’s one of the biggest
scandal that had been held by Enron corporation, an energy trader company. Enron was formed in july 1985 when the texas
based Houston Natural Gas was merged
with Inter north Nebraska Natural Gas company.
In 1990 Enron is the one of the profitable company ever
known. It is the suppliers for all most all of the country in the world.
After Enron launched the Enron Online
system , an internet based system the daily business reached on worth $2.5 billion.
The shares of the company went on increasing up to $84.87 in the end of 2000.
Enron is the top ranked company in America for six years.
But the scandal is recognize that how it began the top
company for six years . The reason are the partners ship with fastow , the
Arthur Anderson LLP, Not showing financial statement .And this the
biggest scandal in the history of the america. And with the collapse of the
Enron 4500 employees lost their jobs.
.Arthur Anderson (1885-1947)
Arthur Anderson , an Orphaned at the age of 16 used to work
as mail boy and once hired by controller of Allis Chambers in Chicago. In 1913
he formed a firm in partnership with Clarence Delany as Anderson Delany and Co.
And in 1918 he dropped partnership with Clarence. He renamed his company Arthur Anderson &co.
And in 1917 he was Graduate from the Kellogg school.
Arthur
Anderson LLP
Arthur Anderson LLP’s full form is Arthur Anderson Limited
Liability Partnership, based in Chicago was the used to be one of the “Big
Five” accounting firms. It provide auditing, tax and consulting services. It was founded in 1913, This firm voluntarily surrendered it’s CPA(
Certificate of Public Accountants ) after being found guilty of criminal
charges on the handlings of the Auditing of Enron corporation, an energy based
in Texas which had filled for bankruptcy. This firm was convicted of
obstruction of justice for shredding document. The responsible individual for
the Enron scandal are Nancy Temple( Anderson
legal Dept.) and David Duncan( Lead Partner for the Enron account).
Sarbanes
Oxley Act : The act of 2002
Pub.L.107-204, 116 stat 745. Enacted July 30 2002
( Public Company Accounting Reform and Investor Protection
Act), and (Corporate and Auditing
Accountability and Responsibility Act )
are commonly known as Sarbanes-Oxley
Act, Sarbox or SOX. It is named after U.S senetor Paul Sarbanes and U.S
Representative Micheal G. Oxley.
This law contains 11 titles and it covers issues as auditor
independence,coperate governance, internal control assessment and enhanced
financial disclosure. The main reason for the invention of Sarbanes Oxley Act
is the collapse of the biggest coperation of the America , Enron.
