5. On October 16, 2001, Enron

Enron is a company of the merger between InterNorth (distributor of natural gas by pipeline) with Houston Natural Gas. The two companies have joined in 1985. The core business of Enron engaged market in the energy industry, and then perform a very broad diversification even in areas that have nothing to do with the energy industry. The business diversification, among others, include futures transaction, non-energy commodity trading and business activities keuangan.Kasus Enron began to unfold in December 2001 and continues market to roll in 2002 very broad implications for global financial markets marked market by declining stock prices drastically various stock exchanges around the world, from America, Europe, to Asia. Enron, a company that is ranked seventh of five hundred of the leading companies in the United States and is the largest energy market company in the US went bankrupt with debts left nearly US $ 31.2 billion.
In the case of Enron known occurrence of moral hazard behavior among manipulation of financial statements with a record profit of 600 million market US dollars when the company suffered a loss. Manipulation of profits due to the company's desire that the stock remains attractive to investors, market this embarrassing case involving the allegedly participated in the White House, including the vice president of the United States. Chronologically, facts, data and information from various sources related to the collapse of Enron (debacle), can the writer suggested as follows:
1. The Board of Directors (the board of directors, executive market directors and non-executive director) allow the activity-specific business activity contains elements of conflict market of interest and allow the transactions based on the information can only be accessed by the Parties in the company (insider trading), including the practice of accounting and unhealthy business market before it is revealed to the public.
3. In early 2001 the firm Andersen partners to evaluate the possibility of retaining or releasing Enron as a client of the company, given the very high risk associated with accounting and business practices Enron. From the results of the evaluation was decided to retain Enron as a client KAP Andersen.
4. One of the Enron executives in the report have questioned the practice of accounting companies that are considered unhealthy and expressed concern with regard to the matter to the CEO and partner market of the firm in mid 2001. Andersen Enron CEO assigning legal counsel to conduct an investigation into these concerns but does not allow advisors law to question the considerations underlying the accounting in question. The results of the investigation by the legal counsel concluded that there are no serious matters that need attention. market
5. On October 16, 2001, Enron's financial statements published third quarter. The report said that Enron's net profit has increased to $ 393 million, up $ 100 million compared to the previous period. Enron CEO Kenneth Lay, Enron continually mention that the outlook is very good. He also did not explain in detail about the imposition of cost accounting (special accounting charge / expense) market of $ 1 billion, which actually cause the actual results for the period to $ 644 million loss. The analysts and reporters then find out more about the burden of $ 1 billion, and was derived from transactions carried out by companies that established by the CFO of Enron.
6. On December 2, 2001 Enron bankruptcy registering the company to court and lay off 5000 employees. At the time it was revealed that there are loans that are not in the report worth more than one billion dollars. With this disclosure that the value of investments and profits on hold (retained earnings) is reduced in the same amount.
7. Enron and Andersen Firm accused of committing crimes in the form of destruction of documents related market to the investigation into the bankruptcy of Enron (inhibition of the judicial process
9. KAP Andersen dismissed market as Enron auditor in mid-June 2002 while the firm Andersen market stated that the audit assignment by Enron had expired at the time of the Enron filed for bankruptcy market on December 2, 2001.
10. CEO of Enron, Kenneth Lay resigned on January 2, 2002 but still retained his position on the board of directors of the company. On February 4, Mr. Lay resigned from the board of directors of the company.
13. On March 14, 2002 Justice department sentenced KAP Andersen BERSA