Journal of Finance and Investment Analysis

Fraud Examination of the Enron Corp Company

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• Abstract

  This research paper takes into consideration the tools that are availed by Modified Altman, Chanos, Beneish, among others, to evaluate Enron Corp yearly 10k financial report as filed with SEC for the years beginning 1997 to 2001 mainly to identify the financial fraud that the company committed and how it could have been prevented before it escalated beyond control. The reported base its primary data source on the SEC Edgar Database, which has information on financial statements for all publicly listed companies. After successfully applying analytical tools such as Altman's Bankruptcy Predictor, Fraud Statement Index, and Analytical tools, this research paper concludes that the company's fraud could have been detected early on between the years 1999- 2000 period (Lucas & Koerwer, 2004).

  Keywords: Bankruptcy, Financial ratios, Fraud, Beneish model.