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Financial scandals have been common in corporations for a considerable length of time.USA has suffered many Accounting (Financial) Scandals in the past. Identify any TWO of the Major Accounting...

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Financial scandals have been common in corporations for a considerable length of time.USA has suffered many Accounting (Financial) Scandals in the past.

Identify any TWO of the Major Accounting Scandals that have happened in the USA in the recent past.

Describe how the scandal was carried out and how the schemers managed to evade detection. Who were the key individual(s) involved in the scandal and for how long did they carry out the scheme?

Describe how the the scandal was exposed and what happened to the perpetrators of the scheme.

Answered Same Day Nov 24, 2021

Solution

Mehzabin answered on Nov 25 2021
143 Votes
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Title: Major Accounting Scandals of USA
Contents
Introduction    3
Enron Corporation Scandal (2001)    3
Lehman Brothers Scandal (2008)    4
Conclusion    5
Works Cited    6
Introduction
    Accounting scandals happenwhen an organization, generally a corporation and occasionally government firms or charity, purposely and illegally alters its books and data for the monetary profitability of the corporation or for a few chosen set of individuals. These scandals are frequently involved in exaggerating profits and assets, understanding and hiding liabilities, covering the real form of a corporation’s finances or easing insider trading or any other sorts of immoral and unlawful financial transactions. Some of the biggest accounting scandals in the history of USA are further discussed.
Enron Corporation Scandal (2001)
    Enron Corporation Company was USAenergy, utilities and commodities, established out of Houston, Texas. This company’s accounting scandal is one of the most contentious of the previous years of USA. In 2001, it was found that the company has been utilising accounting escapes very cunningly to conceal billions of dollars of bad debt while at the same time escalating the company’s income. This scandal did serious damages to the shareholders as they lost over $74 billion due to the collapsing of Enron’s share price which was around $90 and went under $1 within a year (Azibi et al.).
    A revelation by an SEC investigation ascertained that CEO Jeff Skillings and former CEO...
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