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) ) ) ) ) ) ) ) ) Intro
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“THE ENRON CASE AND THE
ARTHUR ANDERSEN CAP”

In the Enron Corp case, which collapsed in

December 2001, the company's management
engaged in a series of unethical acts, including
manipulating financial statements to show a
profit of 600 million dollars. This
manipulation was done to maintain the
company's stock price, which was influenced
by the management.
 INTRODUCTION
The accounting profession adheres to a code of ethics that must be
followed by its practitioners. The Code of Ethics for the
Accounting Profession serves as a guiding principle for all
members, ensuring that they uphold the highest standards of
professionalism and integrity in their work. The Enron Corp case,
which involved financial statement manipulation to maintain the
company's stock price, highlights the importance of ethical conduct
in the accounting profession.
) ) ) ) ) ) ) ) ) CASE KAP ARTHUR
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ANDERSEN
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Chapter 1
MAIN PROBLEM
Enron Corporation, a major energy company in the US, engaged in
fraudulent practices to manipulate their financial reports and inflate their
stock prices. This led to a massive financial Case, resulting in the collapse
of both Enron and their auditor, Arthur Andersen. The case highlighted the
importance of ethical accounting practices and independent auditing.
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DISCUSSION
Contents

01 Fraud that Enron

02 The Impact of the Enron
Fraud on the Accounting
has committed
Profession

03 Negative Impact of the 04

Violated Code of
Enron Case for
Indonesia
Ethics
) ) ) ) ) ) ) ) ) Intro
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“VIOLATION BY KAP MITRA
WINATA”
The case involves violations committed by Drs.
Petrus M. Winata, a public accountant from KAP
Drs. Mitra Winata dan Rekan, in collaboration
with PT Muzatek Jaya, a property development
and building management company located in
Central Jakarta. The company engaged in
unethical practices, including bribery, to
manipulate its financial statements with the
assistance of the accountant.
VIOLATION OF PUBLIC ACCOUNTANT
CODES OF ETHICS

Drs. Winata's actions violated the Indonesian Public

Accountants' Code of Ethics (Kode Etik Profesi
Akuntan Publik Indonesia, KEPAP) in the following
ways:

1. Disregarding restrictions on audit assignments

2. Engaging in unethical collaboration with a client
3. Failing to maintain proper documentation
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ETHICAL PRINCIPLE | DRS.
WINATA'S ACTIONS

01 Honesty 04 Independence

02 Objectivity Professional
05 Competence

03 Responsibility
) ) ) ) ) ) ) ) ) RELATED
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REGULATION
SANCTION

Two-year Prohibition from Requirement to

suspension of his providing comply with
license to practice attestation Continuing
public accounting, services during the Professional
effective March suspension period. Education (PPL)
requirements
15, 2007
 CONCLUSION
The case of Drs. Petrus M. Winata highlights
the importance of upholding professional
standards in the accounting profession. Public
accountants have a responsibility to act with
integrity and independence to maintain the
trust and credibility of the financial reporting
process. Drs. Winata's actions were a serious
breach of this responsibility and resulted in
significant sanctions
 Thank You
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