... pressure from external sources to keep performance of the company high. Prestigious magazines such as Fortune pronouncing Enron as "America's Most Innovative Company" for six years running beginning in 1996. Enron created thousands of these special purpose entities (SPEs) as a method of concealing their losses and creating artificial profit. At the time companies in the U.S. didn't have to consolidate these SPEs into their group accounts if "third parties had a controlling and "substantial" equity interest in the SPE, where "substantial" was defined as at least 3% of the SPEs' assets." George J. Benston et al This involvement in the fraud means that the professional integrity of people with in the profession cannot always be relied on. In the UK principles based system this can cause problems. "Integrity underpins and supports high quality information that is fit-for-purpose." reporting with integrity. The UK accounting system changed in the wake of Enron. A ...

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