Little did the public know, the success of the company was a gigantic lie, and possibly the largest example of white-collar crime in the history of business Paranoia flourished and trading contracts began to contain highly restrictive confidentiality clauses. However, this was a serious crisis situation and many people were affected through the process as well as their money.
Following this initial action the US Congress approved the deregulation in the sale of natural gas.
More proactive oversight by audit committees who understand financial accounting principles as well as how they are applied.
The Enron scandal has come to be known as one of the prime audit failures of all time and serves as a classic example of corporate greed and corruption.
The purpose of this article is to summarize preliminary observations about the collapse, as well as changes in financial reporting, auditing and corporate governance that are being proposed in response by Big Five accounting firms, the AICPA and the SEC.
Enron is the largest bankruptcy reorganization in American history at that time. However it is still argued today by different stakeholders who are is responsible.
Arthur Andersen LLP, after settling two other massive lawsuits earlier inis preparing for a storm of litigation as well as a possible criminal investigation in the wake of the Enron collapse.
According Sherron S.
It took the economy the better part of a year to recover from the damage the Enron controversy caused to the US as a whole.