Tech and The Economic Clash Mathematics & Economics Essay

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“Bigger than Enron” is a documentary that examines the deceptive reporting tricks that were used by famous audit cases of Sunbeam, Arthur Anderson-Enron, and Waste management. Additionally, this documentary shows the accounting scheme of three companies. The video examines while Arthur Anderson LLP could compromise his integrity so that he could please the clients.
According to this documentary, there are methods organizations use to make fraudulent financial reports. For example, a company can decide to miss recording the stocks as expenses in the balance sheet so that a company can look more profitable. This makes the company attract more investors and increase the prices of the stock. If the prices of the stocks are high, then personal gains will also increase. In the video, Albert J. Dunlap inflated the incomes of the company by exploiting the "bill and hold" accounting technique to jack the process of the stocks for personal gain. Enron was a company that exploited stock options. This was an American multidimensional energy and service corporation whose headquarters were found in Houston Texas. In the video, stock options were not regulated in the 1990s and this made some CEO in Enron store personal wealth yet the stocks were not recorded in the balance sheets of the company as expenditure. With these fraudulent activities, Enron was able to attract investors and increase its revenue. However for Enron and other companies to maintain this kind of activity, they choose to hire powerful lobbyists to black legislations.