Identify elements of fraud and compliance laws that have been drafted as a result of Enron and other industries, and

Description

Part I: Enron Case Study and SOX

The purpose of this lab is to allow you to research the Enron fraud case and the SOX compliance law’s requirements. In this lab you will:

• Research background information on SOX and Enron.

• Identify elements of fraud and compliance laws that have been drafted as a result of Enron and other industries, and

Complete each section of the lab by following the instructions for the exercises in each section.

When you have completed all requirements, you should complete the Lab#1 worksheet that contains all o your responses to all parts of Lab 1.

Lab 1.1 Exercise

Review the following information about Enron Corporation:

Enron Corporation was an energy company that, at one point, was the seventh largest company in the United States and the largest trader of natural gas and electricity in the country. Enron started in the mid ’80s and, by the ’90s, the company was involved with trading and ownership in electric, coal, steel, paper, water, and broadband capacity. In 2001, Enron filed for bankruptcy, making it the largest bankruptcy in history at the time. An accounting scandal caused the company’s collapse. Thousands of Enron’s employees were laid off. Employees lost their life savings because of the loss of the company’s stock. Shareholders lost $11 billion.

After reviewing the information above, launch your Web browser. Search for more information on the Enron fraud case.

In your text document, document what you find about the case and cite at least three resources you used. Be sure to cover these topics:

a. Early history

b. Misleading financial accounts

c. Accounting scandal of 2001

d. California’s deregulation and subsequent energy crisis

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