“Enron: The Smartest Guys in the Room”

1 ) Provide an overview of how Enron deceived users of financial statements

Enron deceived the public and their shareholders using their financial statements by stating false figures in their earnings and employing accounting procedures that were not in accordance with the professional standards . In some cases , Enron classified as assets those that are supposedly liabilities or losses of the company . By bloating their assets and profits , the company was able to deceive everyone that it is a financially healthy company . Enron was able to hide losses through the creation of special

purpose entities located outside the country that shoulder those losses so that the umbrella company would continually look profitable . Quarter after quarter , Enron 's officers had to distort figures using irregular accounting procedures to keep the illusion of earning billions in profits . For instance , it sold shares to an entity called EPP that was supposedly independent . But it turned out that EPP was just made by Enron so that it could make it appear that the shares sold were part of the company 's gains . Because of the officers ' creativity and with the help of the accounting firm Arthur Andersen , Enron 's shares kept on surging

2 ) Identify and describe how at least 5 specific individuals or groups of stakeholders were harmed by the misdeeds that took place at Enron

Five groups of people whom Enron harmed by the company 's deception were its employees , shareholders , investors , business partners , and a specific securities analyst . The company 's lower management...