... a mix of bad corporate ethics, lack of corporate governance, manipulated accounting guidelines, and most importantly a large conflict of interest (Jickling). Enron created Special Purpose Entities (SPE's), otherwise known as off-book partnerships, and the executives used these partnerships to hide their large amounts of debt as well as record profits by taking out large loans in the SPE's name to purchase ... five members having an accounting background (Buckstein). Before the SOX reform, BOD and audit committee members had little to no financial literacy and therefore had no idea what ...

• Word Count: 3410
• Approx Pages: 14
• Has Bibliography
• Grade Level: Graduate