Research internet, newspapers, and business magazines for a corporate case that hasattracted media attention due to unethical accounting practices. Write an ESSAY to addressthe following...

Overview of the company background:
Enron accounting scandal is one of the largest accounting fraud in the history which gained lot of attention of media, stakeholders, and general public across the globe. Enron Corporation was a US based organization which was involved in energy and commodity trading business and was headquartered at Huston, Texas. The company was founded by Kenneth Lay in 1985 which was result of merger of two companies i.e. InetrNorth and Lay’s Houston Natural Gas. The company was having more than 29,000 staff before its filing of bankruptcy in 2001 and was having major products such as natural gas, pulp and paper company, electricity and communications and the company was having turnover more than $101 billion. The company was also awarded as America’s most Innovative Company for six consecutive years.
Unethical accounting practices and behavior taken by the management:
The company and its management followed the unethical accounting practices to hide its losses and took undue advantages of various loopholes in law. The company was a loss making entity and the company used mark to market accounting and special purpose concepts to hide its losses and tried to show the losses much lesser than actual losses. The books of accounts of the entity were purely cooked and the entity misstated their financial statements by adopting wrong accounting practices. The entity and its management was having absence of ethics and moral values and they worked for their interest only rather than interest for stakeholders. The entity implemented various business models to generate the revenue the but many of the projects were completely failure due to which entity incurred huge losses and to hide losses the entity used MTM and SPV concept. The entity recognized the revenue in the year of signing of contract itself whereas there was no visibility of future cash flows from such contracts. Further, the entity took loans at various special purpose entities and the entire loan was transferred to Enron which resulted into heavy loan on SPVs and under accounting laws at that time, there was no requirement to consolidate assets and liabilities which resulted in non- disclosure of heave debts at SPV level. Thus, the entity and its management was purely involved in unethical accounting practices to safeguard their interests. The auditor of the entity was also involved in the scandal and reported unqualified opinion despite...