The Enron Failure

I am going to be talking about the company that filed for the largest bankruptcy of all time, and that is the American energy company, Enron Corp and who was responsible for it. The reason I have decided to speak on Enron is because it was indirectly responsible for many other corporate collapses. This graph gives shows us how it effected other companies.

Immediately after the bankruptcy, most people began to speculate that their bankruptcy was a result of their accountants, and their inability to detect and rectify the situation. However, as the investigations into the bankruptcy got under way it became clear that it was not only the accountant’s responsibility but also the responsibility of many other important parties of the company including, the CEO, The Board, Management, Shareholders’, Bankers and Lawyers.

The most obvious blame belongs to the CEO who had the overall authority and responsibility for management and financial reporting. A CEO cannot claim to be doing hi...