The reasons for the downfall of Enron are many, and include high-risk investments, hiding information to decrease their debts and posting false profit reports. Over a four-year period, Enron had entered into risky investments, and did not disclose millions of dollars in debt. In October of 2001 it was revealed that Enron amassed a debt of over 1 billion dollars that had been kept hidden from the public. Many of these investments had made millions for the Enron executives, while driving the company’s finances down. It was later revealed that tax officials and other auditing personnel had been bribed by Enron officials to maintain these false statements, and receive tax breaks. By December 2001, Enron had filed for chapter 11 bankruptcy, costing nearly 4,000 employees their jobs. This scandal also co

It is important for us to learn from the mistakes made by Enron to ensure a bright future for our company. New laws will be passed to ensure that business failures such as Enron do not occur in the future. As long as a company can maintain a high ethical level, they have the ability to be successful. Unethical ideas and actions may lead to a gain in money for a short time, but as seen at Enron, they will eventually be revealed, forcing management to account for them.

The auditing job done by Arthur Anderson was another issue that attributed to the bankruptcy of Enron. Their job was to look at all finance statements to verify that the information is correct. This failed to occur, and thus the public was deceived by both organizations. They made mistakes and were either unable or unwilling to show the monetary losses Enron had accrued. This shows the importance of an auditing firm that will question all information to ensure the released financial statements are correct.

st those employees much of their retirement income, because the majority of their 401K retirement savings was in Enron stock, which had plummeted during this time.

Some topics in this essay:
, Arthur Anderson, high-risk investments, enron executives, retirement income, learn mistakes enron, learn mistakes, mistakes enron, reporting finances, future company, lower employees,