Essay on Enron and Enron’s Demise

Submitted By Evelyn-Alfaro
Words: 322
Pages: 2

Did Enron’s bankers, auditors, and attorneys contribute to Enron’s Demise? From the case study, it is evident that its bankers, auditors and attorneys played a role to Enron’s demise. The chief financial officer of the firm, who was known as Andrew Fastow also played a role in the demise of Enron. The company wanted to appeal to potential and current investors and as a result, it developed a practice of manipulating its financial status and inflating the profits of the company. With the agreement, the CFO was able to commit several high profile offences including money laundering and fraud. When all these activities were discovered, Fastow was charged and the reputation of the company fell as well as the reputation of its bankers Enron’s external auditor also had a role due to the outcome of the company going south. Author Andersen, the owner of the audit company was responsible for ensuring that the financial statement and analyses of Enron were accurate and on point. As a result, investor’s judged the potential and smartness of their decision to invest in Enron from his audit reports. However, it was realized that Andersen had a business partnership with the accounting firm. When he was called upon to present audit documents, he destroyed them and in the process, obstructed justice that will have been served. Attorneys that worked with Enron were not left behind in playing a part for the downfall of the company. For example, the company that acted as a legal advisor…