Case Analysis-the Fall of Enron

The Fall of Enron: Case Analysis

Group #1

The

 Fall

 of

 Enron:

 Case

 Analysis

  September

 21,

 2014

Table of Contents

Why was Enron such an admired company prior to 2000? .......................................................................... 3 Why did the company fail? ........................................................................................................................ 4 The Beginning of the End

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 4

  SPE’s and Aggressive Accounting

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 5

  The Fall

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 6

  Why were the company’s internal checks and balances and incentive systems unable to prevent its demise? ......................................................................................................................................................... 7 Internal Auditors

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 8

  Board of Directors: Audit Committee

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 9

  Legal Counsels

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 10

  Incentive programs

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 11

  Why did the external auditors and board fail to prevent Enron’s failure?......................................... 12 External Auditors...