{"id":16,"date":"2013-10-08T01:44:55","date_gmt":"2013-10-08T08:44:55","guid":{"rendered":"https:\/\/blogs.ubc.ca\/anquanwang\/?p=16"},"modified":"2013-10-08T01:45:37","modified_gmt":"2013-10-08T08:45:37","slug":"16","status":"publish","type":"post","link":"https:\/\/blogs.ubc.ca\/anquanwang\/2013\/10\/08\/16\/","title":{"rendered":"Enron Scandal&#8211;Financial Statement Fraud"},"content":{"rendered":"<p><a style=\"font-style: normal; line-height: 24px; text-decoration: underline;\" href=\"https:\/\/blogs.ubc.ca\/anquanwang\/files\/2013\/10\/f-enroncartoon.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-17 alignleft\" style=\"border-color: #bbbbbb; background-color: #eeeeee;\" alt=\"\" src=\"https:\/\/blogs.ubc.ca\/anquanwang\/files\/2013\/10\/f-enroncartoon.jpg\" width=\"300\" height=\"300\" srcset=\"https:\/\/blogs.ubc.ca\/anquanwang\/files\/2013\/10\/f-enroncartoon.jpg 300w, https:\/\/blogs.ubc.ca\/anquanwang\/files\/2013\/10\/f-enroncartoon-150x150.jpg 150w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>As we know that financial statement fraud is \u201cthe deliberate misrepresentation of the financial condition of an enterprise accomplished through the intentional misstatement or omission\u00a0of amounts or disclosures in the financial statements in order to deceive financial statement users.\u201d\u00a0 The temptations to commit this fraud may come from \u201csituational pressure\u201d, \u201cperceived opportunity\u201d and \u201crationalization\u201d.\u00a0 One of the most famous fraudulent financial statements is Enron scandal.\u00a0 Enron was a Houston-based energy and service corporation. In 2000, the executives Kenneth Lay, Andrew Fastow and Jeffrey Skilling made this deadly choice that hides huge debts and reports big potential profits. \u00a0This choice shortly boosted the company\u2019s stock price before catching people\u2019s suspicion.\u00a0 In the end, the company went bankrupt. Stockholders lost about $74 billion and 90,000 employees lost their jobs.\u00a0 The executives were found guilty and sentenced into prison.\u00a0 What I can tell is that honesty and business ethics are very important for accountant and company executive.\u00a0 It is considered irresponsible and inappropriate to pursue self-interest by sacrificing social interest.\u00a0 Both awareness and management need to be promoted to reduce the chance of fraud happening.<\/p>\n<p>Resources:<\/p>\n<p>https:\/\/www.google.ca\/search?hl=zh-CN&#038;site=imghp&#038;tbm=isch&#038;source=hp&#038;biw=1366&#038;bih=577&#038;q=enron&#038;oq=enron&#038;gs_l=img.3..0l2j0i24l8.1547.2920.0.4443.5.5.0.0.0.0.94.305.5.5.0&#8230;.0&#8230;1ac.1.27.img..0.5.304.REF4tS_WADk#facrc=_&#038;imgdii=_&#038;imgrc=lrLmJ5NZa-WJKM%3A%3Bxle2AhJm0LiziM%3Bhttp%253A%252F%252Fwww.corpwatch.org%252Fimg%252Foriginal%252Ff-enroncartoon.jpg%3Bhttp%253A%252F%252Fwww.corpwatch.org%252Farticle.php%253Fid%253D7828%3B300%3B300<\/p>\n<p>http:\/\/www.accounting-degree.org\/scandals\/<\/p>\n<p>http:\/\/www.mademan.com\/mm\/enron-scandal-summary.html<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we know that financial statement fraud is \u201cthe deliberate misrepresentation of the financial condition of an enterprise accomplished through the intentional misstatement or omission\u00a0of amounts or disclosures in the financial statements in order to deceive financial statement users.\u201d\u00a0 The &hellip; <a href=\"https:\/\/blogs.ubc.ca\/anquanwang\/2013\/10\/08\/16\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":20252,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/posts\/16","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/users\/20252"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/comments?post=16"}],"version-history":[{"count":2,"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/posts\/16\/revisions"}],"predecessor-version":[{"id":20,"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/posts\/16\/revisions\/20"}],"wp:attachment":[{"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/media?parent=16"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/categories?post=16"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/anquanwang\/wp-json\/wp\/v2\/tags?post=16"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}