Background
Corporate Scandals
Arthur Andersen and the SOX act
Corporate Governance
Ethical Considerations
100

Who was appointed CEO when Enron was founded?

Kenneth Lay

100

Jeff Skilling used this complex approach for financial reporting, which made it difficult for investors to to interpret Enron’s financial statements.

Black box

100

How many sections does the SOX act have?

11

100

Name two of the four factors that led to failure in the company’s corporate governance?

Board or Directors

Leadership Failures

Internal Controls

Role of Regulators

100

What unethical practice was done by Arthur Andersen when they ignored red flags in Enron's financial statements?

Biased Accounting

200

What sector was Enron primarily focused on in its early stages?


Energy Sector

200

What is a legal entity created to fulfill a specific or temporary objective?

Special purpose entities

200

What services did Arthur Andersen LLP provide?

Auditing

Tax advising

Consulting services

200

What regulatory commission failed to identify and take action after numerous red flags in the financial statements?

SEC

200

Enron's "Rank and Yank" system led to what type of negative workplace environment focused primarily on short-term performance?

Cutthroat and toxic competition

300

In which year did Jeffrey Skilling join Enron?

In which year did Jeffrey Skilling join Enron?


300

What accounting practice excludes certain assets and liabilities from the balance sheet?

Off-balance sheet

300

Why was Arthur Andersen LLP convicted?

For shredding financial documents in relation to its audit of Enron 

300

What did leadership prioritize over long-term sustainability of the company?

Short-term profits and personal wealth

300

What was the unethical act done by Enron executives as the company was headed toward bankruptcy?

Selling their stock while telling employees and the public to buy

400

Which rival company did Enron attempt to merge with in late 2001?

Dynergy

400

List a factor driven by the rise of Enron stocks.

Energy trading

Expansion of new markets

Attractive to investors

Public perception

400

What was the public agency created from the SOX act called?

The Public Company Accounting Oversight Board



400

Why were board members unable to be independent and neutral?

Conflict of Interest

400

Arthur Andersen's creation of a "shred room" for Enron documents exemplifies what type of ethical and law violation?

Obstruction of justice

500

Which accounting method ultimately led to Enron’s bankruptcy?

Market-to-Market

500

Who was the whistleblower that alerted the higher-ups about the fraudulent accounting practices which led to an SEC investigation, exposing the financial schemes of Enron?

Sherron Watkins Vice president of Enron

500

What do the PCAOB’s responsibilities consist of?

Registration

Inspection

Standard-setting

Enforcing regulations



500

What were the effects of inadequate risk management practices?

Company engaged in highly speculative trading and investment

500

Type of ethical failure was displayed by Enron when they manufactured energy blackouts in California to benefit themselves at the expense of the public?

Lack of Corporate Social Responsibility