In 2001 the Enron scandal was broke and every aspect of the way they did business was out in the open. Stocks went up fast and the board of directors was very happy with this success. Eventually it was discovered two sets of books were being kept by management and this lead to a downward spiral for the company and it became aware that the company was using careless accounting practice and were unethical in the way they did business.
Enron’s highest level of management was involved in the corruption. Executives took part in altering their income statements in order to fool investors in believing Enron was doing great while running the firm into debt. Enron’s accountant Arthur Andersen who was a consultant for the company had an interest in the company. The more money brought in the more business he saw. That right there was a conflict of interest. All of that added to the controversy and could have been prevented if more ethical practices were used. There were no ethical or moral accounting practice followed. There was fraudulent auditing and shredding of important documents. The accounting firm knew exactly what was going on and never reported, but helps to cover it up.
Being the accountant for the company, I would have acted professionally and ethically. The first step I would have taken is make sure what I am looking at is correct, not knowing who all is involved possibly even go to the SEC and let them step in. By not following ethical standards the company lost billions of dollars along with several employees losing their jobs all so these top executives cover their failed ventures up.