Enron Cases

Enron committed many frauds that contributed to its collapse from minimal mail fraud to heavy-duty wire fraud, shareholder fraud, and security fraud. With Enron having had committed these fraud it ruined many peoples lives. It is very important to notice that while fraud can get you ahead for a while it will eventually catch up with you. And it will not only, hit the economy hard but it will affect yourself the company and the lives of innocent individuals. From an analytical view point, which is the view taken here, Enron committed many frauds, many people were involved, and the guilty parties involved where punished or are in the process of being punished. Analytically it was able to be seen what the different reasons why fraud is committed and what to do to prevent fraud in the future, which in the long run would help innocent people, and it will help the markets with the issue of trust. The two main reasons how to prevent fraud is

with the government interference, like with Sarbanes-Oxley Act, and just plainly having companies give good incentives in order to try to avoid the feeling or the urge to commit fraud.

Like in Enron's example there fraud brought about the investigation of Andrew Anderson's Accounting firm, because they contributed to helping Enron in the accounting books, by destroying some of Enron paper work which is illegal to do. It is best to try to prevent fraud and catch fraud before it occurs. . This is why the above methods should be used, because by being able to persuade whistleblowers to blow the whistle on a company that can very well be attempting to commit or are committing fraud when the whistle gets blown. If a whistle blower were to blow, it can very well help stop fraud in another company, which in the long run if they were caught early enough, can save money for the innocent people that get involved without even knowing that they are involved in the fraud of the company. If whistle-blowing occurs before the fraud actually...