Enron James
Luttrell, James P.
January 2, 2015
Auditing Theory Mr. Red Feliciano
Enron Corporation’s Case Analysis
Reference: Auditing and Assurance Principles by Jose Ireneo, Shirley Ireneo and George James
1. A. Fastow is one of the most responsible because being the Chief Financial Officer or CFO of the Enron corporation, he had a major influence. He was guilty of fraud, money laundering, inside trading, and conspiracy, among other crimes. Due to his acts such as misleading Enrons board of directors and audit committee on risky accounting practices and pressuring Andersen to ignore the issues and allow his proposal.
B. Lay being the founder and CEO of the Enron corporation was very much influential to its operations and decision making. He was one of the most responsible in the Enron scandal because of his financial crimes, bank fraud, making false statements to banks and creditors and many more.
C. Skilling in the same way as Lay, was one of the most responsible too because of crimes such as bank fraud, wire fraud and securities fraud. Moreover he too had great influence to the Enron corporation. A lot of the misleading and covering of the fraud are undertaken and improvised by him.
2. Appraisal Services are services that is concerned with assigning and determination of the arm’s length amount or otherwise known as fair value of a particular property. The provision of this service by an audit firm to its audit client would impose a self-review threat because the auditor in a sense would audit and give conclusion and reasonable judgments base on values he made.
Legal services in an auditing sense are any services for which the person or bode performing the service must either be admitted to practice law before the courts of
January 2, 2015
Auditing Theory Mr. Red Feliciano
Enron Corporation’s Case Analysis
Reference: Auditing and Assurance Principles by Jose Ireneo, Shirley Ireneo and George James
1. A. Fastow is one of the most responsible because being the Chief Financial Officer or CFO of the Enron corporation, he had a major influence. He was guilty of fraud, money laundering, inside trading, and conspiracy, among other crimes. Due to his acts such as misleading Enrons board of directors and audit committee on risky accounting practices and pressuring Andersen to ignore the issues and allow his proposal.
B. Lay being the founder and CEO of the Enron corporation was very much influential to its operations and decision making. He was one of the most responsible in the Enron scandal because of his financial crimes, bank fraud, making false statements to banks and creditors and many more.
C. Skilling in the same way as Lay, was one of the most responsible too because of crimes such as bank fraud, wire fraud and securities fraud. Moreover he too had great influence to the Enron corporation. A lot of the misleading and covering of the fraud are undertaken and improvised by him.
2. Appraisal Services are services that is concerned with assigning and determination of the arm’s length amount or otherwise known as fair value of a particular property. The provision of this service by an audit firm to its audit client would impose a self-review threat because the auditor in a sense would audit and give conclusion and reasonable judgments base on values he made.
Legal services in an auditing sense are any services for which the person or bode performing the service must either be admitted to practice law before the courts of