Description
Hypothesis Development
a) What frauds could occur within the Enron environment? How are these related to the specific company, the industry, and the economic conditions as a whole?
b) Of all of the employees, who would have incentives or opportunities to commit fraud? Why?
c) Which of the employees who had the incentive or opportunity to commit fraud is in a position to cause the financial anomalies found? Explain why.
Investigation Planning
a) Describe the process of how could you investigate the potential fraud and the appropriate steps to complete the process.
b) What documents might you need? Who might you need to speak with regarding the fraud? Support your responses.
c) Illustrate how regulatory issues such as Sarbanes–Oxley or SAS No. 99 would impact the investigation. d) What other fraud risk inquiries are needed to investigate the suspected fraud? What steps would need to be taken to address these risk inquiries?
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Explanation & Answer
Attached.
Running head: ENRON FRAUD
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Enron Fraud
Institution Affiliation:
Date:
ENRON FRAUD
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Hypothesis
The environment that could happen at Enron is financial fraud relating to the accounting
procedures to report the wrong company financial position to recover from the poor reputation
from the previous scandal. This is an accounting in appropriation will cheat the public on the
performance of the company. This attracts more investors to risk their money in the organization
with an aim of making more money from their investment (Bauer, 2015). Misleading account
reporting is illegal and unethical at the same time. Enron faces a possible threat of scandal like
experienced in 2001.
The most vulnerable employee to this fraud or the employees with the greatest
opportunity to commit this fraudulent act includes the management. The management may
discuss the methods that could help the company regain its glory through inappropriate repo...