Lou Lung Pai interested me the most, he was one of the top executives. There were 10 players in all and Lou Pai was the mystery man of the scandal that took place at Enron. The co-workers at Enron described him as a man you never wanted to cross, very secretive, rather quiet and kept to himself. He was very intelligent, his trading skills were excellent, and he was the top man on the trading desk. He was married, but had a crazy infatuation with strippers. Every night he went to the strip club
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ethics and auditing can help avoid tragedies like Enron. 1. Enron’s rise to Top 2. Fall of Enron 3. Reflection Enron’s rise to Top Kenneth Lay founded Enron in 1985 and after two years, the company becomes involved in a scandal after two traders suspiciously got consistent profits on betting on the oil markets. The auditors found out about their schemes but Lay still encouraged them to “keep making us millions” (1). When Enron’s reserves were found out to be gambled away by the traders, they
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The movie centers on the Company Enron Corporation, which went Bankrupt in the year 2001 leaving hundreds of its staffs unemployed and thousands of its investors bereft. Enron Corporation was an American energy company based in Houston Texas. It was one of the leading energy companies in United States and was repeatedly named as “America’s most innovative company”. Enron was found to have used various accounting methods to misrepresent its financials. The company’s fraudulent activities brought a
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and obtain high profit, the bets put Enron in danger. Those two traders were fired by Enron after they gambled in Enron’s reserves. On the other hand, Kenneth Lay refused to admit his involvement in this act, but in fact he attended the meeting that discuss about oil scandal issue. Another scandal which is presented in the first part of this documentary film is Louis Borget, Enron’s CEO fraud in diverting company money into his personal account offshore. Auditors tried to uncover this problem and
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never really knew all of the details. When I watched the film, Smartest Guy In The Room, I really got the opportunity to understand what caused the fall of ENRON and the negative impacts ENRON caused. The film begins by questioning the reasons for ENRON’s fall to bankruptcy in 24 days by addressing the characteristics of Pride, Greed , Arrogance, and Intolerance which were all strong characteristics of the corporate culture at ENRON. Ultimately, the executives and employees at ENRON were blinded by
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electricity crisis. The film describes the biggest names on the fraudulent corporation. First is Kenneth Lay, the founder of Enron. Kenneth, nicknamed ‘Kenny Boy’ by his spouse, got the company into scandal in just two years after its establishment, after Enron’s managers bet on oil markets. The second is Jeffrey Skilling, the man who utilized mark-to-market accounting, which allow Enron to appear as being a profitable company, even if the reality might not be so. He also applied the Darwinian philosophy on
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Nicholas Barton 00343164 Accounting 2600 Case Study: The Enron Collapse “Why was it that Enron, a financial services company, in effect, could not release a balance sheet with their earnings statement?” -Jim Chanos, President Kynikos Associates. In the film “Enron: The Smartest Guys in The Room,” analyst Jim Chanos asks why, the 7th largest company in the world at the time, could not supply investors with basic financial statements. These statements as we learn in accounting are the fundamental
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Who were the smartest guys in the room? Kenneth Lay, the founder of ENRON. Louis Borget, the CEO who diverted company money to offshore accounts. Jeffrey Skilling, the CEO who implemented the mark-to market accounting. J. Clifford Baxter and Lou Pai, the executives who Skilling hired. Andrew Fastow, the CFO who created companies solely to do business with Enron. The auditors, who turned the head when the money came rolling in. Are these the smartest guy in the room? In the beginning
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Enron’s Impact The movie Enron: The Smartest Guys in the Room is an informative documentary exposing an unprecedented level of corruption in the business industry. This movie is based on a book written by Bethany McLean and Peter Elkind, who are also the primary interviewees in the film. This movie captures the tragedy in an incredibly detailed and emotion-jerking way, from the beginning of Enron to the end. Enron is well known to anyone familiar with economics, accounting, or business. For
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University of Technology, Jamaica School of Business Administration Internal Auditing Article Review The Smartest Guys in the Room Tutor: Ms S. Bewry Student: Rajik Brown ID#: 0904827 1. To identify least five (5) control issues in the movie using the C.R.I.M.E. abbreviation from the Committee of Sponsoring Organisation of the Treadway Commission (COSO) framework was used. C- Control Activities are procedures and policies that aid management and employees in carrying directives
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