Assignment Title: Fraud Case Analysis -Enron

Objective: The objective of this assignment is to provide you with an opportunity to analyze a real fraud case, identify key issues, evaluate control weaknesses, and recommend preventive measures to mitigate future fraud risks.

Instructions:

Step 1: Research: Research the fraud that happened at Enron.

Step 2: Case Background: Provide a short background of the company and the important people involved in the case

Step 3: Fraud Analysis:

• Identify the red flags or warning signs that could have alerted auditors, management, or regulators to the fraud.
• Describe the specific fraudulent activities or transactions that occurred.
• Discuss the impact of the fraud on financial statements, stock price, and reputation.

Step 4: Control Weaknesses Assessment

• Assess the internal control weaknesses or breakdowns that allowed the fraud to occur.
• Identify control deficiencies that enabled the fraud.
• Evaluate the effectiveness of internal controls related to financial reporting, asset safeguarding, and compliance.

Step 5: Audit Procedures Review

• Suggest additional audit procedures or tests that could have detected the fraud during the audit engagement. Discuss whether the auditors' procedures were sufficient.
• Provide recommendations to strengthen internal controls and fraud prevention measures within the organization. This can include internal control enhancements, whistleblower programs, and fraud risk assessments.

Step 6: Ethical Considerations

• Consider the ethical dilemmas faced by auditors or employees in the case and discuss what actions they should have taken to prevent or report the fraud.

Essential Activities: