INTRODUCTION Assalamualaikum w.b.

t Alhamdulillah, all praises to Allah for given us strengths, will and opportunity to accomplish this report. We, Mohamad Najwan Bin Mohd Nazli, Nur Ezma Nadira Binti Mohd Jid, Ameerah Binti Mohd Yusuf and Ikhwan Zulhilmi Bin Abd Rahman would like to thank our respectful lecturer, Dr. Hazianti Binti Abdul Halim for given us guidance, support and ideas for us and our dearest classmates, for sharing some ideas and support in order to make this report done within the time period. Not forgetting, our parents and family for their prayers and supports for us in whatever weve done. We do hope that this report could be an additional resources regarding the theme and especially case study involving Enron Corporation mainly. The theme of our report is the Financial Statement Fraud. From the listed companies, we are all agreed to select Enron Corporation as our subject. There are many reasons lies behind this. Why we said so? Let us use the word scandal here. The Enron scandal which was revealed in 2001 has led to many effects in accounting and businesses context. The dissolution of Arthur Andersen, which was one the big five in audit firm is one the branch in this scandal leaving now, big four in audit form consists of Deloitte, PwC, Ernst & Young and KPMG. This scandal also is the factor in creation of the Sarbanes-Oxley Act of 2002 which is the new standards to increase the accuracy of financial information report. This is due to creative accounting created by the Enron management in their financial reporting. Enron undoubtedly is the biggest audit failure that we can call here which the fact was, it is the most well-known company in the world but it also is one of companies which fell bankrupt too fast. This report answer some questions that arose when we are talking about the financial statement fraud especially involving Enron Corporation. We answer some of it which is, the nature of the financial statement fraud, why people commit fraud?, how the financial statement frauds occur and are concealed? and what happens to Enron Corporation right now?. We do hope that these questions will help to understand more about the financial statement fraud. Last but not least, thank you for reading our report and happy reading!