According to the Legal Briefcase box,"Paying the Price",the Enron case demonstrates the need for more accounting transparency.
Top executives at Enron approved the removal of several billion dollars in debt from the company balance sheet in order to make the return on equity investment appear to be a higher percentage.Arthur Andersen,Enron's outside accounting firm that should have been providing company audits,did not appear to be serving the company in an honest,forthright,and transparent way.

Question

Quizplus · Accepted Answer

The Legal Briefcase box "Paying the Price" states that the Enron case demonstrates the need for more accounting transparency, and specifically mentions the removal of debt from the company balance sheet to manipulate return on equity and the failure of Arthur Andersen to provide honest and transparent audits.

According to the Legal Briefcase Box,"Paying the Price",the Enron Case