I have been writing the topic in the section '' order intructions'' Research Paper

I have been writing the topic in the section '' order intructions'' - Research Paper Example As a result of his intentional poor financial reporting, special purpose entities and accounting loopholes, the company lost at least $40 billion. This was made possible by the engagement of Arthur Anderson as the company’s sole auditing firm. With the help of Arthur Anderson Auditors, Enron’s Chief Financial Officer managed to manipulate and mislead the company’s accounting committee and the Board of Directors to accept the presented financial records. Indeed, this was a very unfortunate incident which greatly interfered with the company and all its stakeholders. All the employees were affected as well. A part from losing a lot from the $40 billion law suit, they lost a lot of money in pension. This could not be escaped because the company was later declared bankrupt to the extent that it could not manage to compensate its workers. This would mean a great loss to these employees as they would lose all the benefits. Even those who had been working for the company for a long time would not get their pensions upon the dissolution of the company since it would not be in a position to do so. It would be so disappointing and demoralizing for such employees because the scandal would eventually affect them in person. The investors also incurred a lot of losses. A part from discouraging prospecting investors from pumping their resources into the company, the existing ones had to contend with a drastic loss of stock. A few months after the information about the scandal reached the market, the company share prices declined from $83 to $1. Worse still, these investors later lost their investments in the company2. Since the company could not stand on its feet any longer, it had to be declared bankrupt. Meaning, it would not manage to refund the shareholders their investments. To prove that the company lost value, even attempts by its rival Dynegy to buy it out at extremely low price flopped. On the