A History and Reasoning Behind the Sarbanes-Oxley Act 2002

Enron was founded in 1930 and was origin in ally known as Northern strike down Gas Company. It was a conglomerate of the Northern American employment and Light Company, Lone Star Gas Company, and the United Lights and Railways Corporation. In 1979 Northern Natural Gas Company was restructured under the InterNorth Inc. topographic point company. afterwards the purchases of competitor Houston Natural Gas company in 1985 the company was renamed Enron with Kenneth Lay emerging as Ceo. Enron continued to stumble wealthy over the years eventually trading more(prenominal) so 800 different products online including, but not limited to publicise find Management, Coal, Electricity and power, Facility Management, Media Risk Management, Lumber, Plastics, Steel and touch Energy. By August 2000 Enrons stock had r severallyed 90 dollars per sh atomic itemize 18. In about one that same stock would overtop to 30 cents per share. The question is how could a line of merchandise a t the pinnacle of its report be destroyed, financially, so quickly? Especially, with all the safety protocols that are supposed to be used. The answer was un taged later squiffy scrutiny of Enrons financial records. Enron had developed offshore business entities, or a unit with sole exercise of evasion of taxes, which raised the profit ability of their business.

These offshore entities allowed owners and management with the ability to cover any and possibly all loss each quarter. On the alfresco it seem nothing could prohibit the unending upward growth of Enron as a whole. However, the accounting wizards of Arthur Anderson where invade underdeveloped new ways to outwi t and outmaneuver the IRS and different out! side auditing services. The use of these offshore entities drove the stock charge up to new levels at which point top executives at Enron began to resolve on insider data and trade millions of dollars of Enrons stock. After Enrons stock reached $90 per share the top executives with insider information in regards to the hidden losses, began to sell their stock. Financial...If you want to get a entire essay, order it on our website: OrderEssay.net

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