A3 Essay Example | Topics and Well Written Essays - 750 words

A3 - Essay Exampleeuvers enabled them to report profits and hide losses from the books, and as a result of these maneuvers their stock prices rose steeply as investors were attracted to the potential for future high prices.The machinations in their books of accounts were such that retail investors were had pushed to understand them as a result, the management through the use of market place to market system enabled the company to manipulate profits and hide debts. At the time when the issue came to light, it had already been late, to that extent the laws that govern separate business from owners frustrated the efforts to compensate the investors. The actions of the managers in the Enron case is a clear violations of ethic principles, and the ethic principles indicate that individuals are bound a certain responsibility of care to investors, customers and employees. Secondly, auditors failed in their duty of care to the aforementioned parties, and the chief auditor, Arthur Anderson admitted to the errors in the