Enron’s Collapse and Lessons in Corporate Governance
Words: 732 Pages: 2 8814The collapse of Enron Corporation in December 2001 marked one of the most significant financial scandals in history, highlighting the critical importance of professional independence in corporate governance and auditing. Initially a burgeoning natural gas company, Enron, under the leadership of CEO Kenneth Lay and COO Jeffrey Skilling, shifted its focus in the 1990s to energy trading. This transformation, however, was marred by unethical financial practices, including the misuse of Special Purpose Entities (SPEs) to artificially enhance financial statements. Ultimately, […]