Research an accounting fraud scandal on the Internet and discuss what happened. How widespread do you think Accounting Fraud is? Why? As an investor, what are some red flags that could indicate the...

Accounting Scandal
Enron Scandal
Introduction
Enron is Houston based energy firm, founded by Kenneth Ley, is world largest energy trading company.
It is believed that Enron Started using Accounting techniques to keep share prices high, raise investments against its own stocks. These techniques were also known as Aggressive Earning Management Techniques.
These developments shocked investors and create panic situation. They sold millions of shares and this leads to sharp drop in share prices. Much more revelations followed. After this situation they again reinstated their profits by concealing debts in complicated partnership arrangement.
Enron files bankruptcy in 2001 and in 2002 Kenneth Ley resigned.
Enron Accounting Fraud – Far...