What Can Be Done To Prevent Another Enron?

What Can Be Done To Prevent Another Enron?



Enron, Accounting Scandals, Folded Companies. What comes to mind when you hear those words? Senior executives who permitted or encouraged misleading accounting treatment. An audit committee that signed off on misleading accounts. A board that was ineffective in supervising senior managers' actions. These three groups are the people responsible for the downfall of the large company. Their actions resulted in the bankruptcy of the company and the misleading of the employees and other investors.
The suit against Jeffrey Skilling and Kenneth Lay alleged that, “defendants engaged in massive insider trading while issuing false financial statements and making false and misleading statements about the company's purportedly 'record' results and strong operating performance. As a result of these false statements, the company's stock traded as high as $90.75, allowing defendants to dump 17.3 million of their own Enron shares for proce...