Enron

Enron started small as more businesses but grew in a catamenia of 15 years to become one of the largest companies in the country. Competition also grew and Enron was non as profitable as in front and expenses started pickings over. New people were hired to do the experience mature again, but the plan that was proposed required for the confederacy to spirit level a lot of silver. Money that the union was not in position to institutionalize. The company did not have this silver available. The company then teamed up with banks to facilitate the neat necessary to coerce the plan work. There was in informal carry on the money borrow and the development was not organism put down in the fiscal statements. The idea proposed to help the company grow was a good idea, the problem was the need for capital and that this information was not being recorded, no track on the money invested. This is an opportunity for fraud. The company was inviting anyone in the accountin g surgical dent or involved in these transactions to open fraud. LJM1 fiscal statements were separated from Enrons financial statements was there were not consolidated. This was a major mistake. The same person that was already transportting fraud was in charge of LJM1. This singular was in charge of these companies without any home(a) control in place.

The fraud was easy and undetectable since this singular was in charge of everything. This type of fraud is very wonted(a) and the reason many big companies have died. There is no inside control. Too much money being intervention by few people and no o ne is winning care of business. The company! should have separation of duties and set internal rules to ensure that no fraud was committed. The company provided the fraudulent to commit fraud very easy and for a long peak of time. Of course lack of clarity in financial statements is a red flag for investors to look further, ask questions and not to invest until the information is clear and convincing. For many investors it might...If you want to get a full essay, order it on our website: BestEssayCheap.com

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