Open AccessFraud Examination of the Enron Corp Company
Author(s) -
Mahmoud Mofid Abdul Karim
Publication year - 2021
Publication title -
journal of finance and investment analysis
Language(s) - English
Resource type - Journals
ISSN - 2241-0988
DOI - 10.47260/jfia/1042
Subject(s) - bankruptcy , financial statement , accounting , business , statement (logic) , index (typography) , economics , actuarial science , finance , law , computer science , political science , audit , world wide web
This research paper takes into consideration the tools that are availed by Modified Altman, Chanos, Beneish, among others, to evaluate Enron Corp yearly 10k financial report as filed with SEC for the years beginning 1997 to 2001 mainly to identify the financial fraud that the company committed and how it could have been prevented before it escalated beyond control. The reported base its pri-mary data source on the SEC Edgar Database, which has information on financial statements for all publicly listed companies. After successfully applying analytical tools such as Altman's Bankruptcy Predictor, Fraud Statement Index, and Analyt-ical tools, this research paper concludes that the company's fraud could have been detected early on between the years 1999- 2000 period (Lucas & Koerwer, 2004).Keywords: Bankruptcy, Financial ratios, Fraud, Beneish model.