How did the members of the accounting firms violate the standards of integrity and credibility? Question 2: Do you believe the new standards that resulted from the Enron scandal to be adequate?

Regarding Enron, this was a company that resulted in the creation of the Sarbanes-Oxley Act and many reforms to the accounting profession.

Research the company and answer the following questions.

Question 1:

How did the members of the accounting firms violate the standards of integrity and credibility?

Question 2:

Do you believe the new standards that resulted from the Enron scandal to be adequate?

Question 3:

Name and explain two aspects of the Sarbanes – Oxley Act of 2002.

Question 4: Ratio Analysis.

Using the 2000 Enron 10-K, calculate 2 years of the following liquidity, solvency and profitability ratios. Include your calculations and analysis for these ratios and what they tell you about the company.

Liquidity: Current ratio, Accounts receivable turnover

Solvency: Debt to assets ratio, Times interest earned

Profitability: Profit margin, Earnings per share