Enron Corporation Essay - 3370 Words

Enron Corporation Before filing for bankruptcy in 2001, Enron Corporation was one of the largest integrated natural gas and electricity companies in the world. It marketed natural gas liquids worldwide and operated one of the largest natural gas transmission systems in the world, totaling more than 36,000 miles. It was also one of the largest independent developers and producers of electricity in the world, serving both industrial and emerging markets. Timeline Enron began as Northern Natural Gas Company, organized in Omaha, Nebraska, in 1930. The companys founding came just a few months after the stock market crash of 1929, an unusual time to launch a new venture. Several aspects of the Great Depression actually worked in†¦show more content†¦1985: InterNorth merges with Houston Natural Gas Corp. to form HNG/InterNorth. The new enterprise begins to divest some of its business that did not fit in with its long-term goals, including the Peoples division, which sells for $250 million. Perus government nationalizes the companys assets there, and HNG/InterNorth begins negotiating for payment, taking a $218 million charge against earnings in the meantime. 1986: Changes its name to Enron Corp. Sells its chemical subsidiary and its 50% stake in Citrus Corp. Enron built power plants in industrial and developing nations all over the world: Italy, Turkey, Argentina, China, India, Brazil, Guatemala, Bolivia, Colombia, the Dominican Republic, the Philippines, and others. By 1996, earnings from these projects accounted for 25 percent of total company earnings before interest and taxes 1998: Enron puts its Enron Oil Gas Co. up for sale, but refuses an offer, reportedly from Occidental Petroluem Corp., for 53.5% of the unit. The company secures roughly $800 million worth of new customers each quarter. By the years end, it is the largest electricity wholesale operation in the U.S. 1999: Acquires Teeside Utilities and Services from Imperial Chemical Industries PLC for $480 million. BP Amoco PLC pays $45 million for Enrons 50% stake in Solarex, a solar energy venture. BeginsShow MoreRelatedEnron And The Enron Corporation2203 Words   |  9 PagesNearly all accounting instructors utilize the so-called â€Å"Enron Scandal† as a means to educate students on accounting ethics and how regulations in the accounting world were enacted. The 2001 scandal involved two parties: Enron Corporation, a U.S. energy commodities firm, and their auditors Arthur Andersen, LLP, currently a U.S. holding company and formerly one of the â€Å"Big 5† U.S. accounting firms. When the scandal broke, Enron was one of the most innovative companies in the world and Arthur AndersenRead MoreEnron Corporation : The Enron Scandal Essay1172 Words   |  5 PagesThe Enron Scandal The objective of an audit is to â€Å"obtain reasonable assurance† of the credibility of the financial statements of a company . However, in some cases auditors can fail to recognize – or intentionally ignore – misleading data within a company’s financial statements, leading to negative outcomes for lenders and investors. This report will discuss the Enron scandal in which the auditing firm Arthur Andersen LLP turned a blind eye to the fraudulent actions of Enron Corporation, leadingRead MoreEnron Company : Enron Corporation2724 Words   |  11 Pages1. What was the case about? This paper is about the auditing fraud that occurred within the American company called Enron Corporation. 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