1) Enron created offshore entities to reduce taxes through legal and sometimes illegal means. This made it difficult for auditors and regulators to understand its finances. 2) Enron appeared to succeed for a long time in hiding losses in these offshore entities from auditors, investors, and potential whistleblowers. 3) Accounting ethics help maintain standards through transparent reporting, reasonable accounting practices, comparability, and consistency.

1. Creative accounting Enron created an entities offshore. This is also a common practice in accounting and tax planning. Many business do this to reduce the amount of taxes they pay, this can be done legally (tax avoidance) and it cab take illegal forms ( tax evasion). Offshore entities usually enjoy an enhanced level of privacy, this can make it difficult for local governments and auditors to gain insight into what is going on. Enron appears to have managed to succeed for along time in hiding what was going on from both auditors, investors, and potential whistle-blower. If Enron was recording and profits, and assuming not much else was happening in these other entities, then these other entities, then these offshore entities would be recording losses. These losses were conveniently recorded away from financial statement and therefore investors and many staff never new about them.

2. Accounting ethics It help in maintaining accounting standard via., 1)Facilitate transparent and meaningful reporting of financial information 2) Reduce accounting alternatives to reasonable and practical level 3) Enchase comparability of financial statement in time and space 4) Encourage consistency in accounting practices.

3. Whistle blower It has become a serious issue in many parts of the world. Although they are often protected under law from employer relation there have been many cases where punishment for whistle blowing has occurred, such as termination, suspension, demotion, wage garnishment and/or harsh mistreatment by other employee. So in US they are protected by law. There are many private organization who assist whistleblowers such as N ational whistleblower centre in the US and Public concern works in the UK

4. Socail auditing The Nike case : Nike's overseas factories are often described as a Human Rights and Labor nightmare, and the company recognized in the mid-90s that Nike had become "synonymous of slavery". After unsuccessfully trying to improve the situation with an ambitious Social Policy that was not integrated into the decision making process [1st mistake], the company turned against its stakeholders [2nd mistake], canceling financial aid to several universities (U. of Oregon, Michigan, Brown) who had joined the Worker Rights Consortium (WRC), an organization that denounced the physical abuse, low salaries and long hours (more than 72 hours a week) in Nike's factories in Asia, and asked for independent inspections. The Coca Cola case : With a Social Policy based on values such as diversity and non-discrimination (the company fought for the civil rights movement in the segregated South in the 1960s), Coca Cola captured the ethnic market: more than 50% of its American customers belong to an ethnic minority. The company, however, became victim of its lack of coherence when it appeared that the value of non-discrimination, that its Social Policy promoted, had not been taken into account in its Labor policies: its African American employees were underpaid and never promoted. As a result, Coca-Cola is now facing a boycott organized by some of its old allies such as the Civil Right Movement.

5. Sarbenes-oxley act Senator Paul sarbanes and representative Michael Oxley who drafted the Sarbanes-Oxley act of 2002. If not follows the act leads to loss of exchange list, imprisonment, lack of investor confidence, CEO or CFO who submit wrong certification leads to 10year imprisonment and also 1 million $ fine and it committed in willfully the fine increased to 5 million $ and 20 year imprisonment. SOX applies to all public companies in the US and international companies that have registered equity or debt securities with the securities and exchange commission and the accounting firm that provide audting services to them.