Open AccessEnron: The Good, The Bad, The Lessons
Author(s) -
Lori Zulauf,
Peter Robert Grierson
Publication year - 2011
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v1i11.3998
Subject(s) - timeline , audit , bankruptcy , accounting , going concern , business , external auditor , public relations , political science , auditor's report , finance , internal audit , history , archaeology
The recent bankruptcy of Enron provides many opportunities for learning in all business disciplines. Beyond the obvious questions, such as How could a company as large as Enron fail? and Why didnt Arthur Andersen provide adequate assurance? lies a host of additional equally interesting questions. Why didnt external financial analysts detect problems earlier? Could the SEC and other regulators have done more to bring problems to light? Why was Sherron Watkins a lone voice in asking for an explanation?Beyond the immediate Enron debacle lies additional questions. How can we detect other companies in similar difficulty? What changes can we expect in accounting and auditing standards? What changes have occurred or can we expect in the oversight of businesses and auditors?This paper will provide a timeline of Enron developments, an analysis of the above questions, and additional discussion questions and teaching resources to foster critical thinking in the classroom.