In the wake of the Enron scandal there has been many questions raise about the strength of our economy. Investors have questioned the accounting practices of many other firms. There has been significant fallout on the financial markets. There has been considerable negative consequences in the market, the economy and a delayed recovery in business investments. The United States has seen a dramatic decline in the strength of our economy Even the global economy is not a strong as we once thought. There has also been a new level of government intervention and scrutiny of many multi national companies along with an increasing number of new law and regulations being passed. How were the accountants and top management able to disguise expenses in excess of 4 billion dollars in the form of revenue?
             The increased skepticism about accounting practices has forced many multi-national corporations all over the world to defend their financial statements. This loss of investor confidence has lead to significant changes in accounting standards and auditing practices. Along with a new idea that these companies and the people who run them, like coe and cfo, be held responsible for there actions. Economic analyzes were predicting that the market impact would prove to be modest and temporary. Predicting that the worst of the aftermath is over and the market should near or pass pre-Enron levels. This prediction may have been accurate if not for the September 11 attacks and the two recent and ongoing public wars in Iraq and Afghanistan. Coupled with the numerous, not so public, mini wars being waged in various other parts of the world.
             An investigation by the SEC and various other agencies found almost 3.8 billion dollar in disguised expenses. These hidden expenses include but are not limited to: listing company expenses as capital expenses, which are not reflected in the company earnings results and improper transfer that were not made in acc...