• Course Information

    Title: Fraud and Deception: An Enron Case Study
    Category: Accounting and Auditing
    Field of Study: Auditing
    Course Code: A010-0259
    CPE Credits: 10.0
    Price: $69.95
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Description

Description:
The purpose of this course is to review the factors that led to the demise of Enron. This course also looks at the aftermath of Enron including changes that have been made to accounting, auditing and SEC rules as a direct result of those issues identified as existing in Enron. This course reviews the GAAP rules in effect at the time of the Enron abuses, at the Enron case with particular emphasis on the four special purpose entities that led to Enron's restatement of its financial statements and its ultimate bankruptcy filing. It also looks at the aftermath of Enron including the Sarbanes Oxley Act of 2002 and its rules affecting auditors and accountants, and the new consolidation rules related to variable interest entities (VIEs) which require that certain off-balance sheet entities be consolidated.

Delivery Method: Online Self Study

Level: Overview

Prerequisites: None

Advanced Preparation: None

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Course Details

Author: Steven C. Fustolo

Category: Accounting and Auditing

Field of Study: Auditing

Passing Score: 70%

Publication Date: 07/12/2010

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Objectives

Objectives:
Section 1:

1. Outline the GAAP rules that existed at the time of Enron, as they relate to investments, special purpose entities (SPEs) and consolidations;
2. Compare and contrast the three tiers of ownership of outstanding voting stock and their accounting treatment;
3. Categorize the three types of securities and the accounting treatment within the categories under FASB No. 115;
4. Identify when the equity method should be used;
5. Name the general rule for consolidation under ARB 51;
6. Explain the SEC's position on consolidation;
7. List the factors that the registrant should consider in determining the most meaningful presentation in deciding upon consolidation policy;
8. Provide examples of when to use combined financial statements;
9. Delineate the basic rules that must be followed when presenting combined financial statements;
10. Name the exceptions to the more than 50% ownership test of ARB No. 51;
11. Define the term "special purpose entity";
12. Trace the steps that were usually taken by an SPE;
13. Name the advantages of using SPEs under the previous rules in effect during Enron;
14. Describe the three general criteria for non-consolidation;
15. Summarize the special rules for SPEs involved in leasing transactions;
16. Explain the rules for SPEs when there was a transfer of financial assets and liabilities;
17. Identify the rule for balance sheet classification of notes receivable in connection with the issuance of equity and paid-in capital; and
18. Name the rule regarding companies recording income and gains on their own stock.

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Profession

NASBA: Yes

QAS: Yes

CPA: Suitable for all CPAs

IRS: No IRS credit for Enrolled Agents.

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