write 3 things that you learn from what happen to Enron Scandal
Breakdown of ethical values. If financial specialists lose trust in the dependability of numbers that are introduced to them, our business sectors will suffer offensively. It will be harder to raise cash. It will be harder to keep up evident enthusiasm for our business sectors. The wellspring of capital will go away. It will have far-reaching financial and official results. The Enron story was a story not simply of the disappointment of the bookkeeping firm, additionally the conventional Watchmen: the board, the review advisory group, the attorneys, the venture investors and the rating offices as well.
Need for an oversight body to ensure investors protection. We require more daylight significantly on the framework so that the general population can see what’s going on. Since if the bookkeeping calling is terrified to work in general society area, out in the daylight so individuals can see everything that is going on, then, truth be told, that ought to let you know something – that there’s something incorrectly. The bookkeeping firms ought to remember it; general society ought to comprehend it. The truth can only be availed to the public one a strict, rigorous enforcement agency is in place and that accounting firms are not left to govern themselves; the oversight should have oversight power, with disciplinary forces, with forces of starting their thorough assessment and survey of reviews.
Investors should be cautious. One of the biggest questions that were asked in Enron collapse was who the investors were to trust? The investors are therefore to rely on the review advisory groups of sheets of executives. Although all may seem to be well in the financial sector still a lot is at stake; it is still risky undertaking, and they should listen to the warning signs in the press.