What Enron accounting practice did Arthur Andersen label as medium to high risk?
A) SPEs
B) Mark-to-market accounting
C) Officers as principals of other firms doing business with Enron
D) a and c
E) a, b, and c

Question

Quizplus · Accepted Answer

Enron's use of Special Purpose Entities (SPEs), mark-to-market accounting, and having officers act as principals of other firms doing business with Enron were all practices that Arthur Andersen considered to be of medium to high risk. These practices were part of the complex web of financial maneuvers that ultimately led to Enron's downfall, highlighting significant risks and ethical concerns.

What Enron Accounting Practice Did Arthur Andersen Label as Medium