Since the first day of elementary school, students have been taught and encouraged by their teachers to be obedient. When the class full of children are compliant, the teacher is able to do his job to the best of his ability. When each student is playing fair, sharing, and working together, the school day goes smoothly, but students are not always on their best behavior. Maybe a young student does not like another, or maybe a student thinks he deserves more time than a class mate using a toy. Whatever the disconnection may be, a teacher will step in to monitor the situation at hand. The teacher will administer disciplinary actions, if needed or emphasis the rules that the students are expected to follow. The student/ teacher scenario closely …show more content…
It took further investigation to really pin point how Enron had been able to get away with accounting fraud for years. Enron’s auditors were from Arthur Anderson, CPA firm. In 2000 Enron paid out Arthur Anderson twenty-five million dollars in audit fees and twenty-seven million for consulting fees. Having the same company preform both audit work and consulting is no longer allowed, but we will get into that later. The fact that Enron paid Arthur Anderson over fifty million should have been a red flag because that was not reasonable amount when compared to the average. Enron was able to carry a lot of inaccurate financial information because of the accounting loophole that allowed the company to put the total amount of energy trades down on its accounts as if they were sales transactions. Also, Enron managers manipulated the intent and purpose of using Special Purpose Entities (SPE’s) by using them to cover debt and to twist the parent company’s reported revenues and earnings to appear better than it reality. Another theory as to why Enron went under the radar is because Enron funded millions of dollars to support politicians and lobbyist that push for deregulation of energy markets. In fact, a man with the name of Max Yzaguirre, who was head of Texas’ programme to deregulate the electricity market, was forced to resign as a result of Enron collapsing. Max Yzaguirre was the former president of Enron in Mexico and it was publicly known that Kenneth Lay, the founder and CEO of Enron, gave twenty-five thousand to the Republican party the day after Max Yzaguirre was appointed by Rick Perry. (the guardian 2002). There were several activities happening internally, externally, and