Enron accounting scandal

E22974

accounting scandal corporate fraud case financial scandal

The Enron accounting scandal was a major corporate fraud case in the early 2000s involving widespread financial misrepresentation at energy company Enron, which led to its bankruptcy and spurred sweeping reforms in U.S. corporate governance and financial regulation.

Aliases (2)

Enron executives ×1
Enron scandal ×1

Statements (48)

Predicate	Object
instanceOf	accounting scandal → corporate fraud case → financial scandal →
cause	accounting fraud → concealment of debt → earnings manipulation → financial misrepresentation → inflated profits → mark-to-market accounting abuse → off-balance-sheet financing → use of special purpose entities →
country	United States →
endTime	early 2000s →
hasEffect	Enron bankruptcy → civil lawsuits → collapse of Arthur Andersen as an auditing firm → creation of the Public Company Accounting Oversight Board → criminal prosecutions of executives → enhanced internal control requirements → increased regulatory scrutiny → investor losses → job losses → loss of confidence in corporate financial reporting → loss of shareholder value → reforms in U.S. corporate governance → reforms in financial regulation → stricter auditor independence rules →
industry	energy →
inspired	Sarbanes–Oxley Act →
involves	Arthur Andersen → Enron Corporation → Enron executives → U.S. Department of Justice → U.S. Securities and Exchange Commission → special purpose entities →
keyPerson	Andrew Fastow → Jeffrey Skilling → Kenneth Lay → Sherron Watkins →
location	Houston, Texas →
mainSubject	Enron →
peakPublicExposure	late 2001 →
relatedTo	corporate governance → energy trading → securities fraud → whistleblowing →
startTime	2001 →
timePeriod	early 2000s →

Referenced by (4)

Subject (surface form when different)	Predicate
Public Law 107-204 → Sarbanes–Oxley Act of 2002 →	motivatedBy
Public Company Accounting Oversight Board ("Enron scandal") →	createdAfter
Enron accounting scandal ("Enron executives") →	involves