Enron: The Smartest Guys in the Room

Chapter 4: Management Fraud & Audit Risk. Your paper will cover the concept of fraud, as it relates to Enron.

For this paper, put yourself in the year 2000 (before the fraud was discovered). You are a staff auditor on the Enron Audit. Your manager (me) has asked you to write a planning memo documenting the Fraud Risk Assessment for Enron, and you should use your knowledge of the company (from the video) as the basis for your assessment.

1. Begin your memo defining fraud, and types of fraud.
2. Select any fraud risk factors you can identify in the nature of the company (management, funding, related parties, etc.), as well as in Enron's industry
3. Conclude your memo with a recommendation of what the effect should be on the audit.