In this writer’s February 27th article this year, "Enronitis – A Communicable Disease" the following statement was made. "If the Enron practices are as widespread in other companies, as some believe, we may be seeing a domino effect with Enron and Global Crossing only the beginning. "
At that time, only Enron and Global Crossing, along with their mutual auditor/consultant Arthur Andersen, were under the microscope of public and Security and Exchange Commission (SEC)) scrutiny. At this writing there are at least thirty (and counting) companies that have admitted "accounting irregularities" and/or which are the subject of formal investigations by the SEC.
These disclosures should by no means be considered "voluntary mea culpas." The Federal Energy Regulatory Commission (FERC) along with the SEC seem to have awakened from a decades long slumber and are giving the perception of vigorously pursuing accounting irregularities and other questionable corporate practices. The FERC compiled a list of suspect practices gleaned from testimony by Arthur Andersen and Enron officials and sent out a questionnaire to 150 energy companies. The companies were required to answer, under penalty of perjury, whether or not they were engaging in any of those practices. Ergo, a flood of disclosures.
At that time, only Enron and Global Crossing, along with their mutual auditor/consultant Arthur Andersen, were under the microscope of public and Security and Exchange Commission (SEC)) scrutiny. At this writing there are at least thirty (and counting) companies that have admitted "accounting irregularities" and/or which are the subject of formal investigations by the SEC.
These disclosures should by no means be considered "voluntary mea culpas." The Federal Energy Regulatory Commission (FERC) along with the SEC seem to have awakened from a decades long slumber and are giving the perception of vigorously pursuing accounting irregularities and other questionable corporate practices. The FERC compiled a list of suspect practices gleaned from testimony by Arthur Andersen and Enron officials and sent out a questionnaire to 150 energy companies. The companies were required to answer, under penalty of perjury, whether or not they were engaging in any of those practices. Ergo, a flood of disclosures.