1. look through the financial excerpts from the 2000 Enron 10K and select 2 items that stand out to you as looking "off" from the previous years.

2. Explain why each selection looks "off". what would you have expected instead?

3. state the answer an Enron employee would have told the auditor as the reason for the discrepancy. (using your imagination). assume for this purpose, the auditor believes the answer to be plausible.

4. Now state the response as the " audit firm employee". let us know the "holes" in the Eron Enployesss' reasoning. Include whether you would have gone along with it as a managing partner in an accounting firm ( in beginning on 2001 before we knew anything). if you would have gone along with it then (in 2001), explain what you would change using hindsight. eg. would you still go along?

Answer rating: 100% (QA)

Enrons leadership fooled regulators with fake holdings and offthebooks accounting practices Enron used special purpose vehicles SPVs or special purposes entities SPEs to hide its mountains of debt and ... View the full answer