Accounting Implications to Enron Corporation Case Study

Accounting Implications to Enron Corporation - baptismal font Study ExampleIt is evidently clear from the discussion that the Enron Company had a robust outlook of accounts it was extremely valued stock, and it had a good reputation for making profits. Being a fast-growing company with richly promotion activities, Enron was heading for great heights in business. These characteristics are ideal for any person who wants to invest, and therefore, Enron had many investors coming. The accountants did not lay out their admittedly and fair financial records. The accountants application of germinal accounting practices to manipulate the accuracy of the records was a common practice. The management did this by establishing many limited indebtedness special purpose entities in order for Enrons accounting officers to transfer liability. This bid to ensure all told accounts appear without liabilities was a strategy that renders to chief(prenominal)tain a robust and increasing stock price, thereby charge its investment grade credit ratings. The subroutine of the accountant is to ensure the maintenance of accurate books of accounts, a role that the accountants clearly did not perform. Confidence in the financial information produced by professional accountants is one of the main driving forces for public investments. Accountants have the role of safeguarding the publics interest by providing information that is true and fair for investors decision-making. The manipulation of accounts in order to favor the company and thereby deceive the public to iron boot to invest is unethical. There is a conflict of interest in these dealings. The accountant has to oversee the maintenance of the get wind of the organization and at the same time protect the interest of the public. This context becomes worse when an accountant withal has personal interests in the dealings of the organization. In such instances, accountants should declare any form of conflicting interests and see k guidance when working during such situations. However, this was the fraud by the organization the public interest should take anteriority over personal and organizational interests.