Enron: Fraud, Deception and the Aftermath

Course Description:

The Enron case has torn apart the accounting and auditing profession like no other development. Based on exhaustive research in to Enron by the course author, this course is divided in to three sections as follows: Section 1 emphasized the four special-purpose entities (SPEs) that brought Enron down. Section 2 addresses the Sarbanes-Oxley Act, and its requirements for auditors. Section 3 focuses on recent fraud statistics and an analysis of the new auditor fraud requirements in SAS No. 99.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Outline the GAAP rules that existed at the time of Enron, as they relate to investments, special purpose entities (SPEs) and consolidations
• Identify when the equity method should be used
• Trace the development of Enron’s mishandling of SPEs
• Explain the various ways that Enron violated the three on-consolidation criteria for SPEs
• Draw and outline the basic structures of Enron’s SPE’s
• Explain the effect that the Enron scandal has had on the accounting profession