The blame does not only go for the top management and the auditing firm but also to the employees who let ENRON continue with the fraudulent acts and opted to stay silent either because they fear losing their jobs or they gave in to their own greediness.

Moreover, the accounting system of the company violated many laws that the accounting standards set to ensure the credibility of a financial statement. Set compensation schemes correctly - in service of long-term value and sustainability, not in terms of misleading short-term metrics.

The movie entitled “ENRON: Smartest Guys in The Room is based on a book with the same title written by Bethany Mclean and Peter Elkind. The movie is about a crime story and the bankruptcy of ENRON, one of the most successful and even considered as the 7th largest corporation in America, due to the fraudulent acts by the top management. Employees who had an inkling something was wrong were willing to look the other way for big compensation and a rising stock price.

“Surely all these other people can’t be wrong!” Yet no one realized no one else had done their due diligence. Fill in the order form and provide all details of your assignment. A glut of gas on the market depressed prices and put Enron’s long-term gas contracts underwater. That’s the easy part.”, A gambler at heart, always assumed he could beat the odds. Lay had served in various roles in gas companies before heading Houston Natural Gas (HNG) in 1984. The Wall Street Journal attacked the nature of the writedowns in a, Prompted by these articles, the SEC began an informal inquiry into Enron’s dealings with Fastow’s partnerships. “This stuff sells. They each had idiosyncracies that, when combined, led to a proliferation of problems. Lesson: Resist the temptation of clever accounting tricks that mislead on fundamentals, even if they’re technically legal. Much is written about the management styles of the senior executives at Enron. When developing a business, price was no object - the business Enron could build with an asset would far outweigh a higher price in the beginning. “I’m not particularly interested in the balance sheet. We have hired a team of professional writers experienced in academic and business writing. These professional roles are the cornerstone of the U.S. financial system that protects [...], Enron was a perfect storm of under regulation and corrupt consumerism. Why stop the party? In 2000, SPEs called Raptors would buy underperforming Enron assets. Known internally in Enron as a pushover when negotiating pay and bonuses. Letter from Enron management to trader: “I have complete confidence...please keep making us millions.” (He eventually had a disastrous short position that could have bankrupted the company.). Following [...]. Don’t let management losing sight of the fundamental nature of business and relax their oversight. Mark-to-market requires assumptions about the future performance of deals, and naturally they skewed optimistic. The top management of ENRON wouldn’t be able to accomplish the continuous falsification of the financial information without the help of the auditing firm Arthur Anderson while it is true that the business should have considered the financial users and their well-being instead of being fed by their own greed. Quarters would end with execs scrambling to fill “holes” in the company’s earnings and cover up losses. Ultimately, Lay gained control of the board and became CEO of the company, renaming it Enron. Employees thought the board and accountants would keep bad behavior in check, and thought public markets were heavily incented to detect bad behavior. All papers are always delivered on time. Avoid too-clever schemes that stretch the rules for the promise of a quick return. People who could have stepped in and intervened didn’t, often because they had a large personal stake in Enron’s success.

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