In your text, at the end of Chapter 13, complete the Short Cases: Case 2. This assignment relates to the SECâ€™s complaint against Ken Lay, et.al (Enron).
Case 2 Enron is a large energy trading company that allegedly committed massive fraud. Enronâ€™s primary method of committing fraud was to record liabilities in related partnerships, then known as special purpose entities, that were not consolidated, or combined, with Enronâ€™s financial statements. Company executives have main-tained that they did not know about these massive off- balance- sheet liabilities, which have been estimated to be several billion dollars. 1. As a fraud investigator, how would you go about finding the existence of these liabilities and partnerships?
After reading the case, answer the following questions as noted in your text:Complete the Internet Assignment at the end of chapter 13 in your textbook:
Read the summary of the SEC complaint against Ken Lay et al. of Enron: http://www.sec.gov/litigation/complaints/comp18776.pdf
Answer the four questions posed relating to this complaint:
- The SEC complaint accuses the defendants of disseminating false and misleading statements through which seven forums?
- How many separate incidents does the SEC complaint identify with Causey, Skilling, and Lay making false and misleading statements?
- How many false or misleading reports does the SEC accuse the defendants of causing to be filed with the SEC?
- Using the SECâ€™s online EDGAR Database, look up the last false and misleading Form 8-K dated November 9, 2001. Form 8-K is supposed to report significant events that are of interest to public investors; summarize the significant events reported by this particular 8-K (see the six bullets at the beginning of the document
Your essay must be at least 200-300 words in length. If using outside sources all source citation should adhere to the guidelines of the APA style guide.