Question

Discuss what you would have done if you were leading a forensic accounting team investigating Enron's fraud case in 2001?

Answer 1

ANSWER: The purpose of forensic auditor is to prosecute a party for embezzlement, fraud, or other financial claims. It targets to prevent, detect, and investigate issues of fraud and financial abuse within the company. If I were leading a forensic accounting team investigating Enron's fraud case in the year 2001, as an auditor promoted a zero tolerance control environment where the noncompliance or fraud is difficult and unacceptable to conceal. I would have brought to the notice the unethical practices about the conflict of interest. The mission is to improve the business processes and internal controls, and ensure that corrective action plans are developed within the company. I would have exercised the business judgment what was in the best interest of the company. I would not have allowed the Enron management to abandon the basic accounting standards of integrity and reported their noncompliance that existed different than GAAP or SEC reporting standards.