Enron

The Enron Corp . Scandal

The Enron Corp . Scandal : An Enigma

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The Enron Corporate Scandal : An Enigma

Formerly , a big time industry leader , the celebrated case of Enron was one of grandeur and impressiveness that catapulted into a prominent sensational scandal in the accounting and business world and public censure and finally , to collapse . Fortune magazine reported Enron not only as among the Most Admired Companies in America but also the most innovative large company ' in 2001 , the same year

the scandal was exposed before the year ended (Healy and Palepu , 2003

Born in 1985 from the merger of Houston Natural Gas and InterNorth (a Nebraska pipeline company , Enron swiftly rose and lived for 15 years to become the seventh largest company in the United States employing at least 20 ,000 staff and felt in over 400 across countries . A brief historical background will aid in the better understanding of Enron 's rise from a not-so-known company to a grandstanding one later . This shall present Enron through a timeline graphical history , the financial accounting irregularities with the involvement of Arthur Andersen Co . as Enron 's accounting and auditing firm , and consequently , the enactment of the Sarbanes-Oxley Act of 2002

Enron had its relatively humble beginnings when Kenneth Lay founded the corporation by merging Houston Natural Gas and InterNorth , both companies engaged in natural gas pipelines , and altogether made up some 37 ,000 miles of intra- and interstate pipelines used as a...